1,650 workers at nursing homes in receivership finally get paid

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A court-appointed receiver has doled out paychecks to 1,650 workers at 31 nursing homes and assisted living facilities in Nebraska.
A court-appointed receiver has doled out paychecks to 1,650 workers at 31 nursing homes and assisted living facilities in Nebraska.

A court-appointed receiver has doled out paychecks to 1,650 workers at 31 nursing homes and assisted living facilities in Nebraska.

Omaha-based senior living consultant Klaasmyer & Associates took over the facilities after state officials learned March 23 that owner Cottonwood Healthcare would be unable to pay its employees.

Ken Klaasmeyer of Omaha-based senior living consulting firm Klaasmeyer & Associates Inc. said payroll went out Friday, according to the World-Herald.

Klaasmeyer said the facilities continue to receive reimbursements from Medicare, Medicaid and others.

Meanwhile, officials in Kansas were seeking authority to take over 15 nursing homes affiliated with the troubled Nebraska owner. New Jersey-based Skyline Healthcare operates as Cottonwood Healthcare in Nebraska.

In an emailed statement, Cottonwood spokesman Michael Kosowski told McKnight's last week that  the company considers receivership a temporary status and continues to cooperate with the state.

“During the weeks leading up to the receivership, we worked tirelessly to continue to improve the operation of the facilities to better serve our residents and staff; however, issues beyond our control impeded our progress,” he said. “We maintain that since the receiver was appointed, we have done everything in our power to work with the state and temporary receiver to ensure the continued successful operation of the facilities.”

Klaasmeyer praised the response of the employees, most of whom have stayed on in Nebraska.

Several fundraisers helped provide support for employees even before payroll resumed.

The Nebraska Hospital Association Research and Educational Foundation has committed $100,000 to the cause, with the request that the money go directly to affected employees, the group announced this week.

And Immanuel Communities, with 11 retirement communities and long-term care facilities in Omaha and Lincoln, contributed $250,000 through its foundation, in the form of $100 gift cards for employees.