A skilled nursing facility in Shadyside will close its doors later this summer.
An official from the company that owns the facility blamed a lack of state Medicaid reimbursements for the impending shutdown; however, state Human Services officials countered that the facility owes the Commonwealth approximately $800,000 in nursing facility assessment fees.
According to a statement from company officials, Pittsburgh Skilled Nursing and Rehabilitation Center on South Negley Avenue will close Aug. 12. The facility is working with the state Department of Health on a closing plan, it said, and to find other locations that can accommodate its 140 patients and residents. The company has similar facilities in Shadyside, Greentree, North Hills, Whitehall, Bethel Park, Monroeville and Bridgeville, according to a letter sent to patients and families. Staff can also transfer to the affiliated centers.
Advocates have for years been raising alarms about funding for the nation’s long-term care system, particularly as Baby Boomers age. Another local senior care facility, Vincentian Marian Manor, announced last month it would be closing July 1.
“You have our assurance that we will continue our day-to-day care and operations during this process until our last patient or resident is transferred and the center is closed. We will work with you to find a facility that best meets your needs and take all reasonable precautions to make the transfer as smooth as possible,” Pittsburgh Skilled Nursing and Rehabilitation Center officials said in a letter to patients and residents.
In an interview, an official with the facility’s owners blamed a lack of state reimbursements for the closure.
“We've been taking care of patients, residents and also paying staff, vendors and billing, running our day to day without any compensation, from the state whatsoever,” said Johnny Patterson, vice president of government relations for Genesis HealthCare.
Patterson said the facility was acquired approximately 15 months ago from a bankrupt former owner and it received no Medicaid reimbursements in that time.
An official with the state Department of Human Services said the facility “currently owes the Commonwealth approximately $800,000 in nursing facility assessment fees.”
“We've determined that DHS does not owe this facility any Medicaid funds in the Medicaid fee-for-service program, and we are currently determining if this facility is owed payments by our Medicaid CommunityHealthChoices Managed Care Organizations,” a state DHS spokesperson added.
Pittsburgh Skilled Nursing and Rehabilitation conceded it does owe state bed taxes, but said the Center is up-to-date on its payment plan. The facility is owed approximately $1.2 million in Medicaid, due to “approval delays,” the company said.
In a closure plan submitted to state officials, the company also blamed increased costs during and after the COVID pandemic, low referral and admissions, and “regulatory requirements” for the closure.
The facility is part of Pennsylvania-based Genesis HealthCare. According to the company’s website, Genesis is owned by private equity investors. A number of advocates and researchers have raised alarms in recent years about potential ill effects of private equity ownership, particularly for the quality of care in nursing homes.
The facility has a one-star rating on Medicare.gov.
