‘Crippling’ Staff Shortages Push Nursing Home Chain Into Bankruptcy
‘Crippling’ Staff Shortages Push Nursing Home Chain Into Bankruptcy
(Bloomberg) -- Staffing shortages helped push an Iowa chain of nursing homes into bankruptcy as health-care providers continue to struggle with pandemic pressures.
QHC Facilities LLC filed for bankruptcy last week, citing “crippling staffing and employee retention issues” in a court filing. The Clive, Iowa-based company operates eight skilled nursing facilities and two assisted living homes with a total of about 750 beds in the state and 300 workers.
Occupancy rates plunged as Covid-19 spread through nursing homes, which accounted for a large proportion of deaths early in the pandemic. At the same time, the health-care sector has suffered from mass resignations as workers face burnout and seek more lucrative employment, contributing to swelling gaps in coverage.
The chain was grappling with other problems ahead of the bankruptcy. It’s faced years of fines for substandard patient care, according to the Iowa Capital Dispatch.
A representative for the company wasn’t immediately available to comment.
One of its facilities was damaged in a strong storm in 2020 and still hasn’t been rebuilt. The death of the company’s co-founder in June “had a devastating impact” on the business, his spouse and Chief Executive Officer Nancy Voyna said in the filing, leaving unmet obligations including a $4 million state fee.
Judge Anita Shodeen appointed Susan N. Goodman as patient care ombudsman this week, a common move in health-care bankruptcies to ensure treatment of residents isn’t compromised.
The company is seeking a buyer for its facilities.
The case is QHC Facilities, LLC, 21-01643-als11, U.S. Bankruptcy Court for the Southern District of Iowa (Des Moines).
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