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Nursing home operator files for bankruptcy following government shutdown

February 4, 2016
by Nicole Stempak, Associate Editor
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A Tennessee-based nursing home operator has declared bankruptcy after government regulators cut off federal payments and shut down some of the company's facilities.

Regulators removed all 40 Medicare and Medicaid patients from the John M. Reed Nursing Home in Limestone, Tenn. They said the staff, managed by New Beginnings, failed to ensure timely patient incontinence care, prevent avoidable pressure ulcers and to administer antibiotics as ordered by physicians.

"They've left a lot of people in bad situations: patients, staff and owners of the facilities," says Jim Wheeler, the attorney who represents the nonprofit board that owns the John M. Reed Nursing Home to The Times Free Press.

Regulators also shut down Campus Health and Rehab, a nursing home New Beginnings operated in Liberty, Ohio. The nursing home made a federal "worst of the worst" list of the nursing homes.  According to the report, the facility was understaffed because nurses and administrators weren’t getting paid, so they quit.

New Beginnings Care operated 13 facilities in five states. The company filed a Chapter 11 petition to reorganize its finances under bankruptcy court protection. An emergency hearing is scheduled for 1 p.m. Monday in U.S. Bankruptcy Court in Chattanooga, Tenn.