Governing Body Failed to Maintain Financial Oversight, Resulting in Discontinued Lab Services and Missed Resident Care
Penalty
Summary
The facility's Governing Body failed to maintain oversight of the facility's finances, resulting in significant unpaid balances to multiple vendors, including laboratory services, utilities, staffing agencies, and medical supply companies. The Governing Body was aware of overdue payments and notices for discontinuation of services but did not ensure that these financial obligations were met. As a result, the laboratory services provider discontinued services due to non-payment, and other vendors issued urgent notices threatening to cease services or disconnect utilities. Due to the discontinuation of laboratory services, necessary lab tests for several residents were not obtained as ordered. Specifically, residents who required Depakote levels, comprehensive metabolic panels, complete blood counts, and hemoglobin A1C tests did not receive these services. Staff confirmed that the laboratory did not come to the facility as scheduled, and there was no documentation explaining the missed lab draws. Additionally, staff were not aware if providers had been notified about the missed labs, and alternative laboratory options were limited. Interviews with facility staff and administration revealed that invoices were processed and sent to the corporate office for payment, but payments were delayed or not made, leading to daily calls from vendors regarding overdue balances. Payroll was also delayed on one occasion, resulting in staff temporarily losing benefits and having to pay out of pocket for medical expenses. The facility was also behind on required Safety Net Assessment payments, which had been referred for collection, further impacting cash flow and the ability to pay vendors.