Head of Indiana agency that owns 78 nursing homes resigns
INDIANAPOLIS (AP) — The longtime leader of a public health agency that owns dozens of Indiana nursing homes is resigning amid mounting pressure from the agency’s board following a newspaper investigation.
Matthew Gutwein said Monday that he’ll resign Sept. 30 as president and CEO of the Health & Hospital Corp. of Marion County. The agency owns 78 Indiana nursing homes. The Indianapolis Star reported that the agency had diverted more than $1 billion in Medicaid funds away from its nursing homes for other projects. State and federal officials allowed the practice even though the facilities were poorly staffed.
https://www.wane.com/news/indiana/head-of-indiana-agency-that-owns-78-nursing-homes-resigns/
The longtime president and CEO of the Health & Hospital Corporation of Marion County is stepping down. HHC controls the Marion County Public Health Department, Eskenazi Health and Indianapolis EMS.
Gutwein’s resignation follows a series of investigative stories from our partners at IndyStar. Gutwein faced public scrutiny starting in March when the IndyStar reported HHC diverted more than $1 billion in Medicaid funds away from nursing homes and used the money on other projects instead, including building Eskenazi Hospital in Indianapolis.
According to IndyStar’s report, state and federal officials allowed this practice as residents in long-term care centers suffered in poorly staffed facilities.
“He was probably under pressure from the board to step down,” said Tony Cook, one of the IndyStar reporters who worked on the investigations.
The agency also owns 78 long-term care facilities across the state which are operated by American Senior Communities. About 11% of Indiana’s long-term care residents stay at HHC centers, yet more than 20% of COVID-19 deaths in such facilities are attributed to HHC centers.
In May, the agency’s Board of Trustees approved a motion to conduct an independent analysis of their facilities’ response during the pandemic. The board is made up of seven members who are appointed by the mayor of Indianapolis, City-County Council and the board of the commissioners.
“That has really raised questions from the board, and I think that coupled with our reporting has really increased the level of scrutiny these homes,” Cooks said.
On their website, HHC says their investment in their facilities is more than double the average investment in similar facilities across Indiana, and their quality scores exceed state and national averages.
Earlier this month, IndyStar exposed a secret report that detailed unknown accusations of fraud at the nursing home chain.
According to IndyStar, the report claimed 25 people defrauded HHC’s nursing home system of at least $35 million.
“Only five people were prosecuted and $15.5 million was recovered on behalf of taxpayers,” Cook said.
https://cbs4indy.com/news/ceo-of-health-hospital-corporation-of-marion-county-to-step-down/