Failure to Manage Vendor Payments Resulting in Service Disruptions
Penalty
Summary
The governing body failed to implement and enforce policies for the management and operation of the facility, specifically by not responding to vendor invoices and not addressing facility requests for payment of outstanding bills. This resulted in significant unpaid balances to multiple vendors, including transportation companies, laboratory services, utility providers, and medical suppliers. As a direct consequence, the facility was unable to secure necessary services for residents, such as transportation to physician and medical appointments and laboratory testing, due to vendors refusing service over unpaid invoices. Interviews with the Nursing Home Administrator (NHA) and Director of Nursing (DON) confirmed that three residents had to be sent to the hospital because the facility could not provide transportation for their required medical appointments. Additionally, the DON confirmed that laboratory services could not be obtained for residents because of outstanding bills. Review of the facility's accounts payable ledger showed substantial overdue payments to a wide range of vendors, with many accounts having received no payments for several months.