The Omaha World-Herald reports an Iowa judge has granted the state’s request to appoint a receiver for two southwest Iowa care homes to ensure the government gets money it says it’s owed. The State alleges Faith Ridge Life Center of Malvern and Kevington Lane in Sidney owe the Iowa Department of Human Services hundreds of thousands of dollars in Medicaid funds. District Court Judge Mary Pat Gunderson also has ordered the homes to disclose all of their property and liabilities and ordered them to not transfer any property.Faith Ridge is a 51-bed nursing home, and Kevington Lane is a 21-bed residential care facility, serving those who need a lower level of care than a nursing home. Both properties are owned by Mary Morse-Bolton of Plattsmouth, Neb. Iowa has already suspended payment of Medicaid funds to the facilities.
The appointed receiver is Klaasmeyer & Associates of Omaha, which assists nursing homes and assisted living facilities. The company previously has worked with Morse-Bolton and her properties. A hearing on the matter took place at the Polk County Courthouse in Des Moines on Wednesday and Thursday.
32-year old Daniel Morse, of rural Glenwood, Morse-Bolton’s oldest son, said the state should have had to prove how much the homes owe before taking action. Also, the state has not come up with an exact dollar amount for what is owed. Amy Lorentzen McCoy, spokeswoman for the Iowa Department of Human Services, said in a statement that the Morse-Bolton homes have “a long history of refusing to comply with Medicaid requirements despite our repeated efforts to educate and assist its owner.”
The state has also raised questions about the quality of care the facilities are providing. Morse-Bolton says the residents are treated well.