Algoma, a small town on the shore of Lake Michigan, faced a tough decision in 2022 regarding the future of its municipally owned nursing home. After years of financial struggles, the city opted to sell the home to an out-of-state buyer, Sam Follman, who renamed it Waterfall Health of Algoma. The sale faced opposition from residents and family members of residents and staff at the home. Subsequently, the facility, along with two sister facilities in Wausau and Brown Deer, went into receivership due to financial distress and allegations of mismanagement.
This story reflects a larger trend in Wisconsin, where over one-third of licensed nursing homes have been sold since 2016. The sales often result in declining quality of care and financial instability, with 80% of homes seeing no improvement in their ratings post-sale. The staffing and financial challenges that arise from these sales can negatively impact residents, as seen in cases involving excessive work hours for staff and lack of basic care for residents.
The trend of nursing home sales is a concerning issue statewide, as struggling facilities are often sold to investors seeking profit, leading to potential declines in care quality. The residents of these facilities are the ones who ultimately bear the brunt of these consequences, facing challenges in accessing quality care and potentially being left in substandard conditions. As the state’s aging population increases, the need for stable, high-quality long-term care facilities becomes more critical, emphasizing the importance of ensuring that ownership turnover does not compromise the well-being of vulnerable residents.
Overall, the situation in Algoma and other Wisconsin communities highlights the need for greater oversight and accountability in the sale and management of nursing homes to protect the quality of care for residents and the well-being of staff. Efforts to address the financial sustainability and regulatory challenges facing the long-term care industry are essential to ensure that residents receive the care and support they deserve.
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