The Arkansas Attorney General announced on July 27, 2020 the arrest of Keith Alan Head (“Head”), the former owner of Prescott Manor Nursing Center in Prescott, Arkansas, by the Attorney General’s Medicaid Fraud Control Unit. Head is accused of emptying or severely depleting residents’ trust fund accounts totaling over $43,000 and charged with one count of theft of property valuing more than $25,000.
Head is the registered agent of H.O.P.E Healthcare, LLC, whose principle address is in Conway, Arkansas and is the management company for KSJ, LLC doing business as Prescott Nursing Center and four other homes in Arkansas. The investigation began on September 27, 2019, when the Arkansas Department of Human Services (“DHS”) discovered the residents’ trust fund accounts had been emptied or significantly depleted at several facilities by Head. Referrals were also received by the Prescott Police Department. The joint investigation involved agents from the Arkansas Attorney General’s Office and federal agents with the Offices of Investigation for the Social Security Administration and Health and Human Services. The case will be prosecuted in coordination with the Prosecutor of the 8th North Judicial District.
In September 2019, Head reportedly agreed to the receivership of the Arlington Cove Healthcare in Trumann, which had 35 residents, and Deerview in Ola, which had 32 residents. Head also reportedly owned Lexington Place Healthcare & Rehab in Jonesboro, which had 93 residents, and Lincoln Heights Healthcare in Star City, which had 53 residents, which were subject to further monitoring by DHS.
In October 2019, DHS placed Prescott Manor Nursing Home in receivership because it defaulted on its lease, failed to pay employees, and lacked sufficient funds to feed residents and pay for supplies. Fourteen workers, including direct care employees, were unable to cash their paychecks or had them returned due to insufficient funds. Checks that Prescott Manor wrote to pay invoices were returned due to insufficient funds. Operating accounts had minimal or negative balances. All five nursing homes owned by Head were ultimately placed in receivership. Office of Long-term Care surveyors were on site at all five facilities since September 25, 2019, after officials learned of payroll issues occurring at Lexington Place on September 24, 2019.
The Director of DHS’s Division of Provider Services and Quality Assurance (“DPSQA”) stated at the time, “We are taking these steps to ensure the health and safety of the residents living at these facilities. We will stay at these facilities until we can be assured residents are getting the services they need, and the staff is getting the necessary supplies needed to care for the residents.”
If you or a loved one suffered injuries (or worse) while a resident of a nursing home in Arkansas or in another U.S. state due to a nursing home fall, nursing home aspiration, nursing home neglect, nursing home negligence, nursing home abuse, nursing home under-staffing, or the nursing home failing to properly care for a vulnerable adult, you should promptly find a nursing home claim lawyer in Arkansas or in your state who may investigate your nursing home claim for you and file a nursing home claim on your behalf or behalf of your loved one, if appropriate.
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