Pleasant Hill Healthcare nursing facility in Girard, IL, will close Sept. 1, according to local reports.

The state owes Pleasant Hill more than $2 million in approved and pending applications, according to Fox News. While the independent and assisted living apartments are scheduled to still operate, the 61 skilled nursing residents will relocate. The facility was founded in 1905, with a new nursing home built for 98 skilled care residents in 1976.

More than half of the current residents are on Medicaid, and executives said they hope the state would act on the Medicaid payment backlog.  It’s believed the state currently owes around $280 million to $320 million overall, with half reimbursed later by the federal government, the Chicago Sun-Times reported.