The operator of more than 40 nursing homes in three states is facing pressure from local governments to repay more than $750,000 in overdue utility and tax payments.

Connecticut-based Athena Health Care Systems, which also provides skilled nursing care in Rhode Island and Massachusetts, is as much as two years behind on some payments. 

Two Athena nursing homes in Connecticut have closed since October — Crestfield Rehabilitation Center & Fenwood Manor of Manchester and Middlesex Health Care Center of Middletown. Those facilities were losing $500,000 and $300,000 per month, respectively, according to Lawrence Santilli, president and CEO of Athena.

The provider acknowledged the late bills in a statement to McKnight’s Long-Term Care News Friday, claiming that its financial difficulties rose from “unforeseen challenges” that have plagued the long-term care sector in recent years, such as high inflation, low reimbursement rates and difficulty meeting and paying for staffing needs.

“Athena acknowledges it shortcomings, but it is important to understand the context of our business, which includes a 40-year history of operating skilled nursing facilities throughout the state of Connecticut, and its willingness to step up and take on challenges to support care of its residents when others would not,” said Savannah Ragali, director of marketing and communications at Athena.

Ragali specifically highlighted the cost of filling staff vacancies with expensive agency care workers. 

With officials, including law enforcement, now involved in the process of ensuring repayment to towns, Ragali emphasized that Athena is working with local governments to ensure outstanding taxes are properly repaid. She also stressed that residents and staff of closed facilities are being cared for. 

“Despite recent closures in Connecticut, we ensure that the well-being, safety, and dignity of our residents are never compromised as we diligently transitioned them to other skilled nursing facilities,” she told McKnight’s Friday. “We are proud to say we have placed several of our staff members who were employed at Crestfield Rehabilitation Center & Fenwood Manor and Middlesex Health Care Center in similar jobs across our network.”

Athena has been caught up in multiple, expensive legal actions in recent months, such as a $6 million lawsuit over outstanding employee health insurance claims and a nearly $2 million fine paid to the Massachusetts Attorney General’s office for improperly admitting residents with substance abuse disorder.