DHS Sues to Take Control of Two Nursing Homes Owned by Skyline Health

Craig Cloud

The Arkansas Department of Human Services filed lawsuits Friday to put two Skyline Health nursing homes in Prairie and Howard counties into receivership after concerns surfaced over the company’s finances and its ability to provide food to residents.

“It became apparent that there were financial issues that could impact the day-to-day operation of these facilities,” said Craig Cloud, DHS’ director of the Division of Provider Services & Quality Assurance, during a news conference at DHS on Friday.

Skyline’s Spring Place Health & Rehab in Hazen, which has 39 residents, and Dierks Health & Rehab, with 52 residents, will be operated by Reliance Health Care of Conway, which owns the buildings, if circuit judges approve DHS’ request, Cloud said. It is the first time since the 1980s that DHS has sued to take control of a nursing home.

Skyline, which operates 21 facilities in Arkansas, has had recent financial problems in South Dakota, Nebraska and Kansas. Cloud also said he learned during the week that Skyline’s lender would no longer provide financing for Skyline’s daily operations for the two facilities.

“It became apparent that there were financial issues that could impact the day-to-day operation of these facilities,” Cloud said.

He said DHS had some concerns about the Skyline’s food vendors being paid on time, and then “not being able to provide an adequate supply of food.”

He said no residents went without any meals or food.

A Skyline spokesperson emailed Arkansas Business on Friday and said it “is deeply saddened that it is unable to continue operations in these two facilities. Skyline will cooperate with the state to transition the two facilities to the new operator and will work to ensure the continued operation of the facilities and the best interests of the residents. “

Cloud said he wasn’t sure how long the temporary control of the nursing homes would last.

“We are willing to do so as long as necessary to ensure that the operations are stable, and the health and safety of the residents can be expected,” Cloud said.

Cloud said DHS will continue to monitor Skyline’s other facilities.