(Source: Minnesota Department of Health) 

The Minnesota Department of Health (MDH) in June assumed control of Pine Haven Care Center in Pine Island, due to concerns that a growing list of unpaid bills threatened critical services for residents. The facility has 52 residents and is licensed for 70 beds. 

A Ramsey County District Court judge granted a temporary order that allows regulators to protect residents’ safety and ensure continued care at the facility while operations and management issues are addressed. State officials have arranged for Pathway Health, a professional management organization, to serve as the facility’s managing agent during the receivership. 

MDH acted after staff found evidence that the facility’s growing list of unpaid bills and inability to meet payroll threatened staffing levels, critical services and medications for residents. MDH and the temporary management team will stabilize the facilities’ operations to support staff and to ensure patients receive quality care.  

“This rare step is one we do not take lightly, but the evidence indicated a need for immediate action to ensure that residents are safe and continue to receive essential services,” said Minnesota Commissioner of Health Jan Malcolm. “We are focused on a smooth transition and determining the next steps that will meet the needs of residents, staff, and families.” 

Receiverships, authorized by state law, allow regulators to assume control of a nursing home in certain situations where there are serious health and safety concerns for residents. By law, the receivership cannot exceed 18 months. In a receivership, MDH becomes responsible for operations and finances of the nursing home and typically appoints a managing agent to conduct the daily work of managing the facility. 

State takeover of such facilities is unusual although the MDH action is the second in less than a year. ibn 2021 MDH took over operations at Twin City Gardens in Minneapolis. That facility was closed after it was found to need extensive repairs.