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Relocation of Abbott Terrace nursing home residents in Waterbury underway after feds pull funding to force shutdown

The Athena Health Systems facility is accused of not meeting minimum health and safety standards.

WATERBURY, Conn. — A mass relocation of nursing home residents in Waterbury is underway after state health and safety violations led to the feds pulling Medicare and Medicaid reimbursement funding. 

The move essentially forces Abbott Terrace Health Center to shut down since the vast majority of their residents do not privately pay for services.

The company that runs the nursing home is saying they’ve done everything they can to make the facility safe, but that depends on who you ask.

Abbott Terrace Health Center in Waterbury is facing an imminent closure within 30 days that will impact the seniors.

In a nearly unprecedented move, the Center for Medicare and Medicaid services has stripped the Abbott Terrace nursing home, an Athena Healthcare Systems run facility, of its federal funding. A document delivered to Athena cited a “failure to meet basic health and safety requirements.”

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Those safety issues are chronicled in more documents that show years of state health department inspection violations that have resulted in multiple citations including unsafe flooring and fire doors not up to code. Athena Healthcare said they spent $200,000 to fix the floors and that, "Our team did everything possible.”

Mairead Painter is Connecticut’s Longterm Care Ombudsman who is charged with advocating for nursing home residents and their families. She questioned the timeliness of the response from Athena. 

“In what time period? Because they had months to do this and they sort of waited until the last hour,” said Painter.

The Connecticut Department of Health and Department of Social Services said in a joint statement, “Every nursing home resident deserves to be treated with dignity and respect.” 

That dignity is called into question by a documented incident where a nurse allegedly told an incontinent patient, “I can smell you in the hallway.” 

The nurse removed the resident’s soiled Johnny coat and tossed it so that it “landed on the resident’s face.”

The Abbott Terrace facility now prepares for closure. They have 30 days to relocate residents. 

“What are we going to do live on the street?” asked resident Marcy Stowe.

It will be a traumatic experience for the 180 people who call Abbott Terrace home. 

“It’s devastating to me,” said resident Patricia Shedrick.

Many residents also call the staff "family." 

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“There are many people here who are going to suffer so much from this. Because we are their family,” said Abbott Terrace nursing assistant Barbara Sedlak.

Relatives of residents said it’s an uncertain future that could mean losing touch with nearby loved ones. 

“My husband is here, and I don’t know how I’m going to get to where they are going to ship him to,” remarked Shirley Schofield, whose husband is a resident of Abbott Terrace.

“I’ve got family only five or 10 minutes away and I don’t want to lose that connection,” added Shedrick. 

But other residents said that facility management and Athena corporate have no one to blame but themselves. 

“Just one simple word. Accountability,” said Chaka Fagon, another resident of Abbott.

Fagon described an environment where problems are ignored. 

"If it’s not resolved and it’s dismissed, that’s what is bringing this place down.” 

He went on to talk about a toxic culture that has impacted quality of care. 

“Some employees use threats to get their way,” said Fagon.

The state is now working with Athena to find other nursing homes with open beds. Athena says they are engaging with lawmakers in a last ditch effort to keep Abbott Terrace open. 

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During the height of the COVID-19 pandemic, the state of Connecticut partnered with Athena to stand-up COVID recovery facilities to serve as an intermediate level of care between the hospital and home setting. Those recovery homes were quickly dissolved due to low utilization.

In more recent years, Athena is a company that has run into financial trouble. They owe back taxes in several communities and recently sold five skilled nursing facilities.

Connecticut State Longterm Care Ombudsman Mairead Painter points out that when companies complain about their financial struggles they often point to a need to increase the Medicare and Medicaid reimbursement rates. But Painter cautions that before that is done there needs to be more transparency from companies in terms of knowing where that funding is going and accountability for why it often doesn’t get reinvested into the care and safety of residents and staff.

FULL STATEMENT FROM ATHENA HEALTH CARE SYSTEMS (Sept. 11, 2024)

Abbott Terrace, a 205-bed skilled nursing facility located in Waterbury, Conn, has been providing quality and compassionate care since 1986 to the greater Waterbury region. 

Abbott Terrace supports Connecticut residents and gives them the opportunity for short-term rehabilitation, long-term care, respite services, hospice care and a specialized unit for those with dementia. The center also offers a unique niche in caring for individuals with substance use disorder and behavioral health needs. Waterbury is home to two major hospitals with Level II trauma centers, and Abbott Terrace is an important part of the health care continuum for patients discharged from these hospitals every day. 

Connecticut Department of Public Health identified updates that needed to be made to the physical plant, particularly flooring. Due to the magnitude of the project and availability of vendors, products and the need to relocate residents, these factors extended the regulatorily required timeframe of the project completion. In addition, relocating residents in order to commence the repairs required 30-day legal notice given to the residents. 

Approximately $200,000 was invested in renovating the flooring in the specified areas. The facility had also earmarked additional dollars for further renovations to benefit the quality of life and life safety of the residents at Abbott Terrace. 

During a subsequent DPH revisit in late August, a fire door was identified as requiring updates to comply with life safety codes. DPH made a revisit to inspect this door and noted compliance. However, during the revisit observed another door to be out of compliance. The issue with the second door was rectified swiftly the same day. 

Though we addressed all issues and had expected to achieve compliance in early September, the facility was notified by the Centers for Medicare and Medicaid that they terminated our participation in the Medicare and Medicaid programs. In turn, this will result in the inability for Abbott Terrace to operate and require closure due to the loss of federal and state reimbursement. 

Our team did everything possible in the past several weeks to address the physical plant concerns identified by DPH. We have invested significant financial resources in returning our facility to compliance by upgrading floors, doors, and other identified facility infrastructure. We believed that the identified issues had been successfully resolved. We are aggressively working with Representatives in the area, Congressman and women, and State Senators to avoid this outcome. 

While we will continue to meet with both the Connecticut DPH and CMS officials and take steps to return our program to full compliance, at this time we must prepare for the closure of the facility. This includes identifying other locations for our residents and supporting our staff as they prepare to transfer to other employers. Our highest priority is assuring continued quality of care for our residents during this period. 

Currently, the center is home to 180 residents, including those with behavioral health challenges, substance use disorders, and dementia. Abbott Terrace employs 287 people; Notably, 11 employees have between 30-38 years of service; 25 employees between 20-28 years of service; and 26 employees between 10-19 years of service.

FULL STATEMENT OF CONNECTICUT LONG TERM CARE OMBUDSMAN MAIREAD PAINTER

The recent developments at Abbott Terrace Skilled Nursing Facility in Waterbury are deeply concerning. While public relations efforts may attempt to frame this situation in a different light, the responsibility for the current state of affairs rests squarely with the facility's owner and corporate management. For years, this facility has neglected necessary repairs, failed to update the physical plant, and has not provided adequate support for residents or staff. Unfortunately, this is not an isolated issue, as we have observed similar concerns at other facilities operated by the same corporation.

The measures taken by the Centers for Medicare & Medicaid Services (CMS) are unprecedented in Connecticut, and to my knowledge, have not been seen in the past 25 years if ever. All skilled nursing facilities undergo regular surveys to ensure they meet health and safety requirements for residents. However, Abbott Terrace has repeatedly failed to come into compliance with these standards.

Despite claims by the facility that they have invested over $200,000 to address compliance issues, the bulk of these repairs only occurred after CMS threatened to terminate their provider agreement. Members of the Long-Term Care Ombudsman Program have been regularly visiting the facility, identifying concerns, and communicating with state agencies. These problems were not a surprise to the facility. The Department of Public Health has been actively addressing ongoing concerns that jeopardize the health and well-being of the residents.

The facility has repeatedly highlighted the $200,000 expenditure to address life safety concerns, but they have not disclosed that they waited until the last moment, when both state and federal agencies intervened before taking action. For months, the conditions, particularly the floors, posed significant risks to residents and staff. The corporate office did not initiate any meaningful steps to rectify these issues until it was clear that their inaction could result in the loss of Medicare and Medicaid funding.

The situation deteriorated further in August, when some residents were forced to transfer to another facility to allow the floors to be repaired. Despite legal requirements for a 30-day notice that was provided, residents were given only days to move, after being told that if they did not agree, the facility would lose federal funding and potentially close. For that reason residents agreed to transfer. In addition, the facility’s inadequate infrastructure, such as only having one working washing machine for over 180 residents, created anxiety and stress for some residents about having the personal clothing they needed during the transfer. This further exemplifies the owner’s disregard for resident quality of life and the need to keep the infrastructure of the building fully operating.

These are just a few examples of the systemic failures at Abbott Terrace. The company may downplay these issues, but fire safety systems, working elevators, and life safety measures are not minor concerns, they are essential for ensuring the well-being of residents. Many skilled nursing facilities in Connecticut operate with diligence, promptly addressing such concerns and providing a safe, homelike environment for residents. Unfortunately, this has not been the case at Abbott Terrace.

It is critical that every nursing facility in our state, regardless of ownership, provides an environment that meets the needs of its residents. With most nursing home funding coming from state and federal sources, taxpayer dollars should not support facilities that fail to uphold their responsibilities.

Often situations like this are portrayed as a financial or reimbursement issues, but before there is a call for greater funding, we should ensure there is absolute transparency of where the funds are going and who is receiving them. Facilities, like Abbott Terrace, have parent companies that charge the facility for services under other companies they or related parties own. This is legal, but also makes it appear the facility did not make a profit, however the owner profited from the money they paid themselves in other ways. Nursing Facility Cost Reports--Cost Report (ct.gov) If we are looking at this objectively private companies and individuals would not buy or own skilled nursing facilities if they could not profit from them.

The Long-Term Care Ombudsman Program, alongside state oversight agencies, works diligently to identify issues in long-term care settings across Connecticut. However, it is unacceptable for facilities to act only when an investigation forces them to. Facility owners commit to providing dignified care to residents when they sign provider agreements, and if they cannot meet those obligations, they should not be allowed to operate.

The consequences of Abbott Terrace’s failures are now painfully clear. The termination of the CMS provider agreement has placed both residents and staff in an unsustainable situation, all due to the ongoing concerns as well as the inaction and neglect of the facility’s owner and corporate management. Residents are devastated that they have been told they will need to leave their home, family members, their care team members and potentially their communities of origin.

We stand with the residents, families, and staff affected by this situation, and we will continue our efforts to support them and protect their rights throughout this situation. The Long-Term Care Ombudsman Program will also continue to work to ensure that all long-term care facilities in Connecticut meet the standards of care that every resident deserves.

JOINT STATEMENT FROM CT DEPARTMENT OF PUBLIC HEALTH AND DEPARTMENT OF SOCIAL SERVICES

The following is a statement from Manisha Juthani, MD, Commissioner of CT Public Health, and Andrea Barton Reeves, Commissioner of CT Social Services, on the federal Centers for Medicare and Medicaid Services’ decision today to issue a termination notice to Abbott Terrace Health Center in Waterbury, ending the facility’s participation in the Medicare and Medicaid programs. 

“Every nursing home resident in the State of Connecticut deserves to be treated with dignity and respect, and they deserve an appropriate level of care that protects their well-being and allows them to thrive. CMS’ notice of termination from the Medicare and Medicaid programs given to Abbott Terrace demonstrates the commitment of our federal partner, in close coordination with our agencies, to enforce that standard at all skilled nursing facilities and take prompt action when facility owners fail to meet those standards. Today’s relatively unprecedented decision by CMS was not taken lightly and was necessitated by the repeated failures of Abbott Terrace’s owner and management team to prioritize the health and safety of its residents. 

Medicare and Medicaid will continue to pay for resident care at Abbott Terrace for up to 30 days, after which Abbott Terrace will no longer be allowed to bill Medicare or Medicaid for services. This does not mean that Abbott’s residents have lost their coverage. Residents will still be covered when they move to a facility that participates in the Medicare and Medicaid programs. 

Our focus now turns to ensuring that Abbott Terrace’s owner and management use the next 30 days to assist residents with finding and transitioning to new living arrangements while also adhering to the regulations governing residents’ health, safety, and well-being at the facility. DPH will have monitors at Abbott Terrace daily until the last resident has left the facility. Our agencies will also work with the Long Term Care Ombudsman to help ensure residents understand their rights, explore available living arrangement options, and have as smooth a transition as possible to their next home.”

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Matt Caron is a reporter at FOX61 News. He can be reached at mcaron@fox61.com. Follow him on Facebook, X and Instagram.

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