Unless it receives a last-minute infusion of cash, what the organization is referring to as a "Hail Mary" event, the Linn Health and Rehabilitation nursing home in East Providence will likely close its door permanently this summer. The decision would directly impact 48 residents and their families as well as over 100 staff members.

Linn officials cited the reasons for the potential were due to inflationary food and utility costs, high temporary staffing agency fees and low state Medicaid reimbursement rates that haven’t kept pace with increasing expenses in over 10 years.

As required by state law, the nonprofit filed its Letter of Intent earlier this week with the Rhode Island Department of Health to close its doors on July 20, 2024. The closure date was determined based on the RIDOH’s 60 days’ advance notice requirement.

“We are extremely saddened to have to close our doors after a 53-year history of caring for the long-term care and rehabilitation needs of older adults,” states Jamie Sanford, administrator of Linn Health & Rehabilitation. “We tried everything possible to keep our doors open. Now, we turn our focus to ensuring the safe relocation of residents and the continuation of appropriate medical and nursing care until all transfers are complete. This closure is a challenging time for our residents, our staff, our families, and everyone involved in the operation of our nursing home.”

Linn asserts state approval for Linn's contingency financing plan to convert half of the nursing home into affordable assisted living memory care is "taking too long," and financial resources are "dwindling."

The non-profit claims it had been "clinging to the promise" of a 14.5% increase in Medicaid reimbursement rates. However, the expected date of the raise in October 2024 "doesn't keep pace with increasing costs" and Linn can "no longer afford to wait."

The increase, if and when officially approved by the state legislature to go into effect in October, provides an additional $36 per resident/per day, bringing Linn's Medicaid average reimbursement rate from $255 to $292 per resident/per day, when the actual cost of care is $411. Linn claims it and like nonprofit nursing homes are affected the most, since the majority of residents served are those who are on Medicaid and cannot afford private pay.

So without the aforementioned “Hail Mary,” whether it be monetary from a public or private source or approval of its memory care license, Linn will close in July.

Linn leadership, together with its nonprofit parent organization Aldersbridge Communities and volunteer Board of Trustees, recently fast-tracked a ‘survival’ solution to convert one floor of the nursing home into an affordable assisted living memory care program. Switching to this specialized level of assisted living care would enable Linn to bill Medicaid at a higher rate of reimbursement, and would also be likely to attract private-pay residents.

“State approval for our application for the memory care program is currently going much slower than expected, and time has nearly run out to cover our operational expenses. We can no longer afford to wait, so closure is the inevitable and responsible step,” said Richard Gamache, chief executive officer of Aldersbridge Communities. “We have made tireless pleas to the State for emergency gap funding to keep us afloat until our application can be approved, but to no avail.”