CDPH Rejects Receivership For Humboldt County SNFs

The California Department of Public Health rejected on Wednesday a request from the California Long-Term Care Ombudsman to take three skilled nursing facilities in Humboldt County into receivership.

All three facilities – Seaview Rehabilitation and Wellness Center, Pacific Rehabilitation and Wellness Center and Eureka Rehabiliation and Wellness Center – are expect to begin closing by the end of the year. Combined, they represent about 60% of the SNFs in Humboldt County. Some of the patients may be transferred to SNFs nearly 200 miles away in Central California.

The owner of the facilities, Rockport Healthcare Services, had claimed the facilities were losing too much money to keep operating and had filed closure plans with the CDPH. That prompted the ombudsman to make an unprecedented intervention.

However, the CDPH said the request did not meet requirements under state law for taking the properties into receivership. Among the criteria is their continued operation posed a danger for patients, or a plan was not in place for transferring patients to other facilities. CDPH inspected the facilities earlier this month.

“Investigations for each of the Eureka facilities found none of the conditions provided...would allow CDPH to petition the court to appoint a receiver in any of the three facilities,” CDPH said in its decision letter to the LTC Ombudsman.

Rockport and its affiliated corporations own some 81 SNFs in California. Many have been criticized for providing substandard care. Rockport's owner, Los Angeles resident Shlomo Rechnitz, was denied by CDPH licenses to take over five other SNFs in July. The agency cited the operational issues at the other facilities he owns.