NEW: Linn Health says it will close. Medicaid site visit. State response.

UPDATED:

Statement from Aldersbridge Communities (nonprofit parent organization of Linn Health and Rehabilitation) from CEO Richard Gamache.

Linn Health and Rehabilitation is submitting its facility closure plan today (May 24) and will begin coordinating with the RIDOH and State Ombudsman team on the orderly transfer of residents according to plan. There are 22 studio apartments on the second floor, 16 of which are earmarked for current residents who have been pre-approved by Medicaid for assisted living memory care. State leaders have been made aware that if the license and certification for operating The Loft at Linn was not approved before funds to operate Linn are expected to run out in July, the entire building would be forced to close. The preferred alternative is to keep the pre-approved residents and specially trained memory care staff to operate the new program as soon as possible on the second floor.

Original Story:

The “Hail Mary” effort to save Linn Health and Rehabilitation from closing is coming to an end. That begins the press release issued Thursday afternoon.

The financially troubled nonprofit nursing home notified the Rhode Island Department of Health (RIDOH) of its intent to close, and began the process of notifying 100+ staff, 48 residents and their families of the decision to discontinue its operations on July 20, 2024. 

“We are extremely saddened to have to close our doors after a 53-year history of caring for the long-term care and rehabilitation needs of older adults,” states Jamie L. Sanford, LNHA, LCSW, administrator of Linn Health & Rehabilitation. “We tried everything possible to keep our doors open. Now, we turn our focus to ensuring the safe relocation of residents and the continuation of appropriate medical and nursing care until all transfers are complete. This closure is a challenging time for our residents, our staff, our families, and everyone involved in the operation of our nursing home.”

Faced with rampant inflation, rising food and utility costs, high temporary staffing agency fees, and low state Medicaid reimbursement rates that haven’t kept pace with increasing expenses in over 10 years, Linn Health sought a “Christmas miracle” (see RINewsToday story: HERE) in late 2023 to save the nursing home from having to displace its elderly residents or layoff staff members.

With the ever-dwindling hope of receiving a financial windfall to solve its financial crisis, Linn leadership, together with its nonprofit parent organization Aldersbridge Communities and volunteer Board of Trustees, recently fast-tracked a ‘survival’ solution to convert one floor of the nursing home into an affordable assisted living memory care program. Switching to this specialized level of assisted living care would enable Linn to bill Medicaid at a higher rate of reimbursement, and would also be likely to attract private-pay residents.

“State approval for our application for the memory care program is currently going much slower than expected, and time has nearly run out to cover our operational expenses. We can no longer afford to wait, so closure is the inevitable and responsible step,” states Richard Gamache, MS, FACHCA, chief executive officer of Aldersbridge Communities. “We have made tireless pleas to the State for emergency gap funding to keep us afloat until our application can be approved, but to no avail.”

Most of Linn Health’s residents rely on Medicaid for their healthcare expenses. “While we are honored to care for this vulnerable segment of the elderly population, reimbursement rates as set by the State of Rhode Island don’t sufficiently cover the costs associated with delivering the services that we provide,” comments Sanford. “Unlike private pay, our reliance on Medicaid reimbursement is a major factor in the inability to sustain our operations. It’s beyond disappointing that so many nursing homes like ours have to close because of low reimbursement rates, and that advocacy to get the rate structure to where it needs to be is futile.”

Response from the RI Department of Health (RIDOH):

“There are two separate issues in play. Linn Health and Rehabilitation has announced their intention to close their third floor, 33-bed nursing home unit. Separately, they are looking to convert their second floor, 16-bed nursing home unit to a memory care assisted living unit. Those beds would all be Medicaid beds.

For the third floor, we have yet to receive a closure plan from the facility. Whenever we receive and accept a closure plan from a facility, we work with the facility, residents, and their families to make sure that residents get into new homes of their choosing, whenever possible.

For the transition envisioned for the second floor, EOHHS would coordinate with the facility to get all the documentation to CMS, so the facility could start getting Medicaid reimbursement. The facility has asked RIDOH to hold on processing their license as an assisted living facility until they can start getting Medicaid reimbursement as an assisted living facility. A site visit is a part of that process related to reimbursement and CMS.”

From EOHHS, Kerri White:

“Medicaid conducted their onsite visit at Linn Health today [May 23], as part of our certification review. Once our team reviews the results of the onsite visit and completes the full certification review process which includes RIDOH issuing the license, the Medicaid team will submit the packet to the Center for Medicare and Medicaid Services (CMS) for their review of the request for certification for The Loft at Linn Assisted Living.”   

About Linn Health:

Linn Health & Rehabilitation was named a 2024 ‘Best Nursing Home’ and ‘High-Performing’ short-term rehabilitation home in the nation by U.S. News & World Report. It joins six other homes in the Rhode Island area who have gone out of business, three others that declared bankruptcy, and one other who recently downsized by 50 beds. 

First opened in the early 1970s, Aldersbridge Communities is a nonprofit, mission-based healthcare organization that cares for the most vulnerable elders regardless of payer source. It is the largest provider of affordable assisted living for elders in the State of Rhode Island. Residents enjoy living in comfort, dignity and with purpose at one of Aldersbridge’s four communities: Winslow Gardens (assisted and independent living in East Providence), Linn Health & Rehabilitation (skilled nursing, rehabilitation, long-term care in East Providence), Arbor Hill Assisted Living (Federal Hill section of Providence), and St. Germain Assisted Living (Woonsocket). Main Office: 40 Irving Ave, East Providence, RI, 02914; Phone: 401-438-4456; Web: Aldersbridge.org.

This is a developing story