UPDATE FEBRUARY 7, 2022:
NEWARK, N.J. (AP) — The former owner of a failed multistate chain of nursing homes has pleaded not guilty to tax charges. Joseph Schwartz appeared via videoconference before a federal judge in Newark on Monday (Feb. 7, 2022). Last month, Schwartz was charged with multiple counts of failing to pay nearly $30 million in payroll and unemployment taxes for about 15,000 employees. The Suffern, New York resident’s New Jersey-based company, Skyline Health Care, at one time operated more than 100 health care and rehabilitation facilities in at least 10 states. He also faces Medicaid fraud charges in Arkansas and Nebraska. Schwartz has relinquished most of his nursing homes because of financial insolvency.
UPDATE JANUARY 21, 2022:
NEWARK, N.J. (AP) — Federal prosecutors in New Jersey say the operator of a failed multi-state nursing home chain failed to pay $29.5 million in payroll and unemployment taxes for his employees at 95 facilities he operated in 11 states. Authorities arrested Joseph Schwartz of Suffern, New York, on Thursday and charged him with willful failure to pay over employment taxes, evasion of unemployment taxes and failure to file annual financial reports. Authorities say his New Jersey-based Skyline Management Group had approximately 15,000 employees and Schwartz failed to pay their taxes from mid-2017 through June 2018. Prosecutors also allege Schwartz failed to file financial reports related to Skyline’s 401K retirement plan contributions that are automatically withdrawn from an employee’s pay.
NOVEMBER 15, 2018:
The company that took over management of elderly care facilities in Mobridge and Madison is taking steps to close those properties.
A spokesperson for Black Hills Receiver LLC told DRG news, Mobridge Care and Rehabilitation Center and Madison Care and Rehabilitation Center could close as early as Jan. 31, 2019.
Earlier this year (May 1, 2018). Black Hills Receiver took control of 18 nursing homes and one assisted living center in South Dakota operated by Skyline Healthcare. Black Hills Receiver announced this week (Wed.) it’s determined the two facilities won’t generate enough income to cover operating expenses on a long-term basis.
Black Hills Receiver has notified the state Department of Health and has submitted closure plans to ensure federal requirements are met. The management company will provide each facility with a plan to make a smooth transition.
According to the South Dakota Department of Health, in order to close, a nursing facility must provide the department, residents and their families with 60 days’ notice and ensure all patients have appropriate transfer plans in place prior to closure. In this case, since the facility is also in receivership, Black Hills Receiver LLC will also need permission from the sixth circuit court. The receiver has filed its request.
The Black Hills Receiver spokesperson says each individual resident will receive personal attention to discuss the most appropriate and preferred transfer location for them. Each resident will be provided at least 30 days advance written notice of their individual transfer date and proposed transfer location.
The spokesperson says each resident will have 30 days advance written notice of their transfer date and proposed transfer location.
The owners of the properties operated by Skyline Healthcare (also known as Cottonwood Healthcare), filed legal action in April 2018 in Hughes County Circuit Court to appoint a receiver to run the facilities after New Jersey based Skyline Healthcare failed to pay bills, putting residents at risk.
Divisional vice president in charge of Skyline facilities in South Dakota Debbie Menzenberg told the South Dakota Department of Health in April that Skyline facilities were in danger of having utilities shut off or running out of food and supplies.
At this point, facilities in Pierre, Ipswich, Arlington, Armour, Rapid City, Clark, Sioux Falls, Groton, Lake Norden, Milbank, Redfield, Salem and Watertown will remain open.
