Four Care and Rehabilitation Centers Across the State Are Set to Close


NEBRASKA –Four Nebraska nursing and assisted living centers under state control are set to close.

Klaasmeyer and Associates, the Receiver of the former Cottonwood Healthcare facilities in Nebraska, issued a letter to residents and family of the Norfolk location on Wednesday saying the facility is closing.  The letter, obtained by News Channel Nebraska, cites poor financial performance over the last year and “anticipation that the facility will continue to operate at a significant financial loss,” as reasons for the closure.

An email from the Nebraska Health Care Association says the organization was told that Norfolk Care and Rehabilitation Center, Broken Bow Care and Rehabilitation Center, Schuyler Care and Rehabilitation Center and Grand Island Park Place Care and Rehabilitation Center are closing.

21 nursing home and assisted living facilities across the state were placed in receivership on March 23, 2018, after Cottonwood Healthcare could not make payroll.  The order placed Omaha-based Klaasmeyer and Associates as managers of the facilities while a long-term plan was drafted.  Workers went nearly a month without a paycheck last year because of the transition.

Christina Carstens’ father lives at the Norfolk facility and she was present at a meeting with Klaasmeyer representatives, staff and residents on Wednesday.  She says they were told the facility would close on April 14th.  That gives families 60 days to find a new facility for residents.

It is unclear when the Schuyler, Broken Bow and Grand Island locations will close.

The letter issued by Klaasmeyer says, “The transfer will provide for the continued health, safety, and welfare of the residents.  We ask that you assist in the discharge planning process for the resident you are caring for so that the needs, choice and best interests of the residents are met.”

The Norfolk facility employed 71 people as of March 2018.  The 21 former Cottonwood care centers employed about 1,500 people at that time.  The Norfolk facility had 55 residents in March of last year.

Sidney Care and Rehabilitation, another former Cottonwood facility, announced it was closing on January 14th.  A Wausa location and Omaha location have also announced they are closing.

A Norfolk Care and Rehabilitation official declined comment. Klaasmeyer and Associates did not immediately return a call for comment.

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