Failure to Ensure Timely Payment of Essential Services and Vendor Bills
Penalty
Summary
The facility failed to ensure timely payment of bills and invoices, resulting in multiple overdue accounts and shut-off notices for essential services such as water and electricity. Review of financial records and interviews revealed that invoices from the State Fire Marshal, local hardware store, and utility companies were not paid on time, with some accounts receiving final collection notices and threats of service interruption. The business office manager consistently forwarded overdue bills and shut-off notices to corporate accounts payable, but payments were often delayed or only partially made, leaving outstanding balances. Staff interviews confirmed that the facility was experiencing financial difficulties, with some supplies delayed and concerns expressed about payroll and the overall financial health of the facility. The medical director reported not being paid for several months, and the State Fire Marshal's office confirmed outstanding survey fees dating back to the previous year. The corporate representative acknowledged that some utility accounts exceeded autopay limits and that bills were sometimes only paid after shut-off notices were received, citing cash flow issues and the need to avoid bounced checks. The facility assessment indicated that all 35 residents were clinically complex, with multiple chronic or comorbid conditions, making uninterrupted services critical to their care. Despite the absence of actual service shut-offs at the time of the investigation, the ongoing risk of interruption due to unpaid bills was evident. The administrator's job description included responsibilities for financial oversight, but the system in place failed to ensure timely payment of essential services, potentially affecting all residents.