- Associated Press - Saturday, May 17, 2014

DES MOINES, Iowa (AP) - Two Iowa nursing homes run by a man who once declared he was a candidate for governor have filed for bankruptcy protection.

All-American Restorative Care of Washington and All-American Care Center in Muscatine are owned by Jerry Rhoads, a Muscatine accountant, who told The Des Moines Register (http://dmreg.co/1lMCXTQ ) the state is treating him like a criminal in its oversight of nursing homes.

Rhoads claims $7.2 million in debt and $889,000 in assets including two homes each worth more than $360,000 and $35,000 in equity in a Mexican beach resort timeshare. Potential liabilities are wrongful-death claims filed against an Arkansas facility Rhoads once operated.

The 90-bed Washington nursing home has been on the federal government’s list of the nation’s most troubled care facilities for 22 months.

After state investigators looked into a June 2013 death at the facility, the federal government temporarily banned the home from accepting any new Medicaid-dependent residents and began imposing daily fines against the home until it was able to show compliance with all regulations.

“I don’t think I’m the bad guy,” Rhoads said Wednesday. “I believe this is criminal, the way we have been treated. They have fined us over $100,000, and we lost another $1 million because of the hold they placed on new Medicaid admissions.”

David Werning, spokesman for the Iowa Department of Inspections and Appeals, said the agency “is doing some sporadic monitoring of the homes just to make sure the quality of care doesn’t deteriorate” since they are in bankruptcy proceedings.

The Washington facility currently has Medicare’s lowest possible overall ranking for quality of care.

The federal list of “special-focus facilities” is updated quarterly by the Centers for Medicaid and Medicaid Services. Placement on the list triggers more frequent inspections.

In the most recent update to the list, All-American was designated a special-focus facility that has shown signs of improvement

In September 2013, Rhoads announced he was running for governor of Iowa as an independent candidate, vowing to fight what he called the state’s “punitive and negative” enforcement of minimum-care. He has not filed to run and is not listed as a candidate in the June primary.

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