Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Long Term Care Oversight topic
No spam. Unsubscribe anytime.
Department reports new crisis operations, $4 million reserve and receiverships after abrupt Princeton care center closure
Summary
After the abrupt September 2023 closure of Princeton Care Center, the Department of Health said it has added a crisis operations team, required audited financial statements from nursing homes, and set aside a $4 million reserve to prevent emergency closures; the department acknowledged at least one facility in receivership for financial distress.
Senators pressed the Department of Health about long‑term care facility oversight after the sudden September 2023 closure of Princeton Care Center, which led to the emergency evacuation of 72 residents.
Dr. Baston said the department created a new crisis operations team and set aside $4,000,000 in reserve to prevent emergency closures. "We added an entirely new crisis operations team at the Department of Health," she told the committee. "We have a budget that we didn't have before that is in reserve of $4,000,000 that we could step in and fund to avoid an emergency closure if that were the case again." She also said the department has used receiverships to prevent closures and is actively monitoring financially distressed facilities.
Financial transparency: The department reported that audited financial statements required by recent law have been "eye opening." Dr. Baston said 81% of NF‑1 data (facility financial reports) had material discrepancies compared with audited operating margins, which provided new visibility into facilities' financial positions. The department confirmed it currently has at least one facility in receivership for financial distress and said it has improved tools for monitoring and intervention.
Resident restitution and follow‑up: Committee members asked about resident funds and placement after the Princeton evacuation. The commissioner said the ombuds office worked directly with residents and families to restore personal accounts for residents who agreed to the process, and department and interdepartmental teams offered options counseling and follow‑up to ensure displaced residents received appropriate placements.
Why it matters: Senators emphasized statutory deadlines for transfer reviews and asked why ownership reviews sometimes exceed 120 days. The commissioner said the state has been coordinating with the comptroller and Department of Human Services and that the department has limited background check authority but uses systems such as CLEAR to assess incoming owners' track records.
Remaining concerns: Committee members asked whether the $4 million reserve has been used; the department said it had not yet needed to deploy those funds. Senators requested further details on which facilities are under active financial monitoring and asked for continued reporting.
