All-American Care files for bankruptcy
Owners of the All-American Restorative Care facility in Washington have filed for Chapter 11 bankruptcy.
“We have run out of time and money because of our surveyors,” said Jerry L. Rhoads, administrator and owner of the facility. “With Chapter 11 this allows us to re-organize our business and find a buyer for the facilities.”
During this process, both of the facilities Rhoads owns in Muscatine and Washington will remain open.
“We’re not going to close them, and the patients will remain there,” he said.
Even though the Washington location passed an inspection by the Iowa Department of Inspection and Appeals (IDIA) last week, Rhoads said he didn’t see another option besides filing for bankruptcy.
“They’re [the state inspectors] part of the reason why we filed for re-organization,” Rhoads said. “We just got tired of fighting them.”
On Nov. 4, IDIA fined the Washington facility $30,000 for not performing cardio pulmonary resuscitation (CPR) on a patient found in his or her room on June 2, according to IDIA citation. The citation said after an investigation from the IDIA, it was found that the staff should have performed CPR and documented it.
Rhoads still argues his staff did nothing wrong.
“In this last instance, they [IDIA] claim we should have done CPR when he was found in rigor mortis,” Rhoads said. “We have evidence he was beyond help when he was found and they will testify that the staff didn’t do CPR because it wasn’t necessary.”
A hearing will be held on Jan. 15, 2014, in Des Moines about this fine, Rhoads said. He isn’t too optimistic that the fine will be overturned.
“We’re still going to fight it,” Rhoads said. “We’re still responsible for the current fines—the new owner won’t be.”
Rhoads has been the owner of the All-American facilities for a little over two years.
“Dec. 23, 2011, was the first time they [INIA] came to our facility,” Rhoads said. “They expected us to have everything perfect after buying the place two and a half months before. I find that kind of ironic. Through time we had holds placed on us and lost $1.4 million in revenue because of that. We just got beyond our capabilities to handle this.”
Now that Chapter 11 bankruptcy has been filed Rhoads bank will begin looking for a buyer. He said he hopes both facilities will go to the same company or person and most likely will be a huge conglomerate.