Court, DHHS Step In With Facilities Unable To Pay Employees

A Neligh nursing home is one of nearly two dozen in Nebraska now in a legal battle after failing to pay its employees.

The Omaha World-Herald reported that the Department of Health and Human Services were alerted Friday that Cottonwood Healthcare, the company that owns the Neligh Care & Rehabilitation Center, would be unable to pay its employees.

Matt Litt of the DHHS told the World-Herald that public health officials worked with the Attorney General’s office to set up a receivership and get it approved in court.

Copies of the order signed by a Lancaster County judge were filed in 19 counties. Klaasmeyer & Associates has been appointed to manage the facilities while a long-term plan is worked out, according to the report.

Neligh Care & Rehab remains open and residents are still being cared for. Jessica Snyder, an employee in Neligh, said residents take priority, especially during this difficult time. 

"Our residents are our number one priority, not our paychecks," Snyder said. "They are with us for a reason, so we can help take care of them."

Neligh Mayor Joe Hartz said he was aware of the financial situation and the recent development are concerning to the City of Neligh, as well as to him as a resident of Neligh.

"I'm deeply concerned about this situation," Hartz said. "I was made aware several months ago and had been assured the situation was being taken care of, which is obviously not the case. Our thoughts and prayers are with this situation in hopes that it can be resolved immediately. This facility is vital to our community and to many, many people for their loved ones and for their employment."

Other nearby facilities effected by this development include Norfolk, O’Neill and Wausa.