The reckless abandonment of an out-of-state ownership group left Arkansas nursing homes in chaos attempting to find new places for residents before supplies ran out. Georgia-based Marsh Pointe Management took over the facilities a couple of months ago but now refuse to continue operating the facilities. Such sudden closures are unusual. Officials from the Marsh Pointe company told administrators at the Horseshoe Bend home that they would no longer pay for supplies, including food.
Records show that in early November, the state’s Office of Long Term Care, which oversees nursing homes, denied an application filed by Christopher Brogdon of Atlanta for Marsh Pointe to run the homes. Brogdon, who is licensed to operate homes in Hazen and Lonoke, is under federal court order to repay more than $80 million to investors, whom a federal watchdog accused him of swindling in nursing home deals.
After reviewing federal Centers for Medicare and Medicaid Services ratings for homes that Brogdon controls in Arkansas and other states, Arkansas officials determined that he “had not demonstrated that his facilities were in substantial compliance with state and federal laws,” a Department of Human Services spokeswoman said Friday.
“Suddenly the management was running up and down the hall telling us, you’ve got to be out of here by Friday. … [The operators are] not going to pay one more penny,” resident Arthur Pigg said. “Not food, not nothing.”
However, Pigg did not blame the nursing home’s caregivers, adding that they had done a good job with the tools they’d been given.
“From almost the first day I’ve been here, they’ve had owners and operators who never supported them properly, who put continuous barriers in the way of their doing their work for us,” he said.
The U.S. Securities and Exchange Commission sued Brogdon for securities fraud in November 2015. One month later, a federal judge ordered him to repay investors in 19 bond and private financing offerings.
The SEC complaint accused him of using the money he raised for personal gain and to prop up business interests that were outside the scope of the borrowing. It said Brogdon misled investors in nursing homes and other long-term care facilities as far back as 2000.
The court deemed Brogdon unfit to run publicly traded companies and barred him from management or director roles at firms that report to the Securities and Exchange Commission.
Human Services Department spokeswoman Amy Webb at the time called the finding “concerning” and said officials were unaware of the case when Brogdon received his licenses.