The federal agency that oversees long-term care facilities has notified Athena Healthcare that it will no longer provide federal Medicare funding to about 200 residents at Abbott Terrace Health Center in Waterbury.
The Centers for Medicaid and Medicare Services notified state officials and Athena Tuesday night that it would stop funding new patients after Sept. 10 and halt funding for all patients within 30 days because “the facility is not meeting Medicare’s basic health and safety requirements.”
The unprecedented move by federal officials will effectively close the 205-bed facility because most of its residents are on Medicaid or Medicare, not private insurance. State officials said late Tuesday they would work with the Office of the Long-Term Care Ombudsman to relocate the residents.
“Involuntary termination of a provider contract is typically a last resort after all other attempts to correct a facility’s deficiencies have been exhausted,” the CMS letter said.
“In this case, CMS found that Abbott Terrace Health Center was not in compliance with CMS health and safety requirements. We understand that relocating residents and patients can be difficult for all involved, but CMS prioritizes patient safety and quality of care.”
Athena officials did not immediately respond to a request for comment.
Director of Public Health Manisha Juthani and Commissioner of Social Services Andrea Barton Reeves issued a joint statement Tuesday evening.
“Today’s relatively unprecedented decision by CMS was not made lightly and was made necessary by the repeated failures of Abbott Terrace’s owners and management to prioritize the health and safety of residents,” the commissioners said.
Commissioners said the announcement does not mean Abbott residents will lose their insurance, which will continue if they move to a facility that participates in the Medicare or Medicaid programs.
“Our focus now shifts to assisting Abbott Terrace’s owners and management over the next 30 days to assist residents in finding and transitioning to new living environments while adhering to regulations that govern the health, safety and well-being of residents at the facility,” they said.
“DPH will have a monitor at Abbott Terrace every day until the last resident leaves the facility, and our agency will work with the Long-Term Care Ombudsman to help residents understand their rights, explore available housing options, and ensure a smooth transition into their next home.”
Mairead Painter, the province’s long-term care ombudsman, said closing a facility raises “significant questions” about continuity of care, potential eviction of residents and the health of people living there.
“The State Ombudsman’s Office is deeply concerned by the recent announcement that Abbott Terrace, a skilled nursing facility in Waterbury, has had its Medicare and Medicaid provider contract terminated, leaving many residents and their families in a vulnerable position, facing uncertainty and potential distress,” Painter said Tuesday.
“State regulators work hard to ensure Connecticut’s skilled nursing facilities provide quality care, but there is only so much my office and state regulators can do,” she said. “It is the responsibility of the facilities, their owners and management companies to maintain financial stability and provide quality care. If they are not stable or put profits above the residents of their facilities, concerns about outcomes and care can be significant.”
Painter said while she waits to hear about the facility’s future, her office is helping ensure residents’ rights are protected and providing emotional support to patients.
“We are here to listen to their concerns, offer guidance and connect them to resources that can help them get through this difficult time,” she said.
Abbot Terrace is the largest facility remaining in Athena: It had 205 beds as of the end of August, with 192 in use, according to DSS records.
DPH officials visited Abbott Terrace several times in the first half of the year and found nursing and other staffing shortages, large holes in the tile floors and at least one incident where a staff member told a resident with incontinence issues that “there was a smell in the hallway.”
State officials are considering a variety of options for Abbott Terrace, including appointing an interim manager or putting the facility into receivership, according to a person familiar with the discussions.
The Connecticut Mirror has documented Athena Hospital’s growing financial problems over the past 18 months and lawmakers’ concerns about how the financial difficulties are affecting resident care.
Several employees have contacted CT Mirror to say they were unable to pay medical bills and had medical procedures canceled because Athena owed them about $3 million in employee medical insurance bills.
The facility also owes taxes to several municipalities and late last year closed two nursing homes, Crestfield Rehabilitation Center in Manchester and Middlesex Healthcare Center in Middletown.
Athena also sold five facilities to National Healthcare earlier this year: Newtown Rehabilitation & Healthcare Center, Beacon Brook Health Center in Naugatuck, Montowase Health & Rehabilitation Center in North Haven, Sharon Health Center and Evergreen Healthcare Center in Stafford Springs.
Athena still owns 14 long-term care facilities, including Abbott Terrace, and state officials are debating whether other facilities should also be placed into receivership.
