Newsroom > DHHS News Release

For Immediate Release
May 7, 2015

Contact Kathie Osterman, Communications and Legislative Services, 402-471-9313
Leah Bucco-White, Communications and Legislative Services, 402-471-9356

DHHS, State Senators, Labor, Communities
Working Together to Ensure Care of Residents
at Nursing Homes in Ainsworth/Lyons

Lincoln— A receivership has been granted to a Nebraska company, Klaasmeyer and Associates, that will take over the management and operation of nursing homes in Ainsworth and Lyons temporarily according to the Nebraska Department of Health and Human Services. 

“We’re closely monitoring and continually assessing the situation on-site at both facilities,” said Courtney Phillips, Chief Executive Officer for DHHS. “Our goal is to ensure the care and safety of the residents as well as a smooth transition. We’re working with our partners, state senators and the community to help any way we can within our scope of authority.”

DHHS was notified April 27 that both facilities were closing. There are currently 24 residents at the Ainsworth Care Center and 12 at the Logan Valley Manor in Lyons. Both nursing homes are owned by Deseret Health Group out of Utah. A 60-day notice to residents was required under federal law prior to closure. DHHS officials became aware there wasn’t an adequate plan in place to transition residents out of the facilities or the financial ability to maintain operation and care. 

A receivership is a tool that can be used in situations where temporary management of a facility is needed. A receivership allows an entity to take over the operation of a business and all its assets, but that entity doesn’t own the business. DHHS worked closely with the Attorney General’s Office to move the request for a receivership forward quickly.

DHHS has been on-site at the facilities to make sure appropriate staffing, care and services continue to be provided in a safe environment. DHHS will continue its oversight of the facilities and work with Klaasmeyer and Associates as they begin operation of the homes.

"While I have a number of concerns with Deseret Health Group's sudden and abrupt decision to close Logan Valley Manor in Lyons, I remain hopeful for the residents and employees. Logan Valley Manor has been a shining star for nursing home care in District 16. I also highly admire the hard work, effort, and sacrifice of the Department of Health and Human Services and the Department of Labor in their diligence to ensure resident care remains adequate and employees are cared for in their concerns of back wages and future employment opportunities,” said Sen. Lydia Brasch.

“I am very grateful that the state is moving so quickly to protect the residents of the affected nursing homes. By placing the facility in receivership, the state will assure that winding down the operation will be done with the protection of the residents in mind and recognition that employees need to be paid if they are expected to fulfill their duties,” said Sen. Al Davis.

The Nebraska Department of Labor is working with employees at both facilities and attempting to get payroll records from Deseret. The agency’s Rapid Response Program held an on-site meeting for employees at each location. Information about employment services, workers’ rights and unemployment benefits was shared with employees. 

Deseret Health Group owns four facilities in Nebraska. In addition to the Ainsworth Care Center and Logan Valley Manor, the company also owns Exeter Care Center and Rosebrook in Edgar. Both of those facilities no longer have residents living there.

If people have questions or concerns they can call DHHS at 402-471-3324 (Monday through Friday from 8:00 AM to 5:00 PM) or 402-499-4417 after hours, weekends and holidays.