Nursing home owners providing free care to keep home open

SEMINOLE, Okla. (AP) -- Most of the patients at a financially strapped nursing home are getting free care in an effort by its owners to keep the home open despite stopped Medicaid payments and $185,000 in fines.

At Seminole Estates Nursing Center, 31 of 46 patients are receiving free treatment, while owners John and Jim Smart of Wewoka "are absorbing the consequences" of not having a Medicaid contract, said Charles H. Gonzales, president of Peak Medical Corp., which manages the nursing home.

The home's Medicaid payments of more than $3,000-a-day per Medicaid patient stopped Nov. 26 with no new reimbursements in sight, officials said.

Gonzales said the Smarts didn't want to risk "dislocation trauma" for the nursing home's patients.

Investigators from the Federal Health Care Financing Administration found 36 deficiencies at Seminole Estates on May 26, with other deficiencies reported from inspections on July 28 and Oct. 19.

Those deficiencies have cost the home more than $185,000 in civil penalties since the May inspection.

The home must pass a new Health Department survey to regain Medicaid certification.

Gonzales said the management company intends on recovering from its trouble this year.

"Will we get the building re-certified? Yes," he said.

The Smarts had plans to sell seven of their nursing homes, including Seminole Estates, to a subsidiary of Peak Medical, but acting state Health Department Director Jerry Regier blocked the sale, citing deficiencies at nursing homes Peak already operates.

Jim Smart was convicted in October of attempting to bribe former state Health Department official Brent VanMeter. Both he and VanMeter are scheduled to enter a federal prison this month for three-year terms.