ELK POINT, S.D. (KCAU) — COVID-19, regulations, and disparity in reimbursement for Medicaid Insurance individuals were all listed as major reasons for the closure of a nursing home in Elk Point.

Earlier this month, Prairie Estates Care Center announced that it would be closing its doors by January 14, and in an email sent to KCAU, its parent company, Lantis Enterprises outlined reasons for the Nursing home’s closure.

“I believe it is the perfect maelstrom within maelstrom within maelstrom,” the company said in an email.

The organization also blamed staffing shortages, inflation, and changes in the nursing home’ census for the need to close the facility.

Prairie Estates has served the Elk Point community for 41 years before its closure. However, Lantis pointed to closures throughout South Dakota and the United States as evidence of the difficulties of running a care home in the country. According to Lantis, regulations from the Centers for Medicare and Medicaid Services have tripled in the last 25 years and there are simply fewer people in the workforce, which impacts the majority of people who are in nursing homes.

While regulations have increased but reimbursements have not, as the organization said, the repeal of the Boren Act means that adequate reimbursement is no longer required of Medicare and Medicaid Services.

The hope is that transition will happen smoothly with residents going to different locations based on need, preference, and the ability of facilities to meet the needs of residents. Some residents were also only in the facility for rehabilitation care and those individuals are expected to return home once their rehab is complete.

Lantis also said that surrounding facilities have already reached out to employees at Prairie Estates offering them jobs, but the healthcare organization hopes that staffing levels will remain at a position where residents can stay until they’re ready to be transferred.