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State officials move to safeguard residents in six Iowa care facilities prior to closure

DES MOINES — Six Iowa care facilities were placed in receivership after the owner informed the Iowa Department of Inspections and Appeals (DIA) that it would be unable to continue operating those facilities.

DES MOINES — Six Iowa care facilities were placed in receivership after the owner informed the Iowa Department of Inspections and Appeals (DIA) that it would be unable to continue operating those facilities.

On Monday, Jan. 23, the owner of Blue Care Homes, LLC, notified DIA that they were unable and/or unwilling to continue operations and would not be able to meet the needs of its residents at four nursing facilities and two assisted living facilities.

On Wednesday, Jan.25, pursuant to Iowa Code chapters 135C and 231C, DIA filed for receivership of the six facilities. Receivership ensures that residents are safe and that they have the ability to move to a location of their choosing.

On Thursday, Jan. 26, the courts appointed Michael F. Flanagan—who has significant experience in receiverships—in conjunction with Mission Health, as the temporary manager of these facilities. Mr. Flanagan and Mission Health immediately assumed control of the operations and will remain in control until all 263 residents are safely relocated to a facility of their choice.

Affected nursing/skilled nursing facilities

  • Webster Post Acute Rehabilitation a.k.a. Fort Dodge Villa Care Center, 2721 Tenth Avenue North, Fort Dodge 50501
    (61 current residents)
  • Humboldt Wellness and Rehabilitation a.k.a. Humboldt Care Center, 1111 11th Avenue North, Humboldt 50548
    (45 current residents)
  • Timber City Wellness and Rehabilitation a.k.a. Crestridge Care Center, 1015 Wesley Drive, Maquoketa 52060
    (58 current residents)
  • Madison Wellness and Rehabilitation a.k.a. Winterset Care Center North, 411 East Lane Street, Winterset 50273
    (52 current residents)

Affected assisted living facilities

  • Villa Cottages, 925 Martin Luther King Drive, Fort Dodge 50501
    (14 current residents)
  • Madison Square ALP/D, 209 West Jefferson, Winterset 50273
    (33 current residents)

“DIA’s most important duty is to ensure that every resident is safe,” said DIA Director Larry Johnson, Jr. “Facilities must abide by all regulations to ensure a safe and orderly closure and the State stepped in to ensure this happens.” The department, the temporary manager, managed care organizations, and the Office of the Long Term Care ombudsman will assist residents in determining where they would like to move, and DIA surveyors continue to monitor each of these facilities throughout the transition period.

Residents, staff, and families have been notified of the receivership and closures and additional meetings will occur in the coming days. Federal and state regulations require facilities to remain open while residents are being safely placed at a facility of their choice (60 days for nursing and skilled nursing facilities and 90 days for assisted living facilities).

This is the second time the department has filed for receivership. The first time was in July 2022 for a facility in Sioux City.

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