A Woodstock senior living facility was sued by two companies who claimed they were owed nearly $300,000 for unpaid nursing and management services, according to documents filed in the McHenry County courthouse.
Court records indicate one of the plaintiffs entered into a settlement with Heritage Ministries Management, which operates Hearthstone Communities senior living facility, while a judge entered an order in favor of the other plaintiff.
NurseRight Staffing Agency LLC, based in Rockford, settled with Heritage Ministries Management for about $265,000, records show. Heritage Ministries Management is a New York-based management firm in the process of parting ways with Hearthstone, according to a statement from Hearthstone.
The amount of the settlement includes what is owed to NurseRight for providing nursing staff, plus costs of the lawsuit. A document was filed in the court in late September indicating the debt was paid.
According to its lawsuit, NurseRight entered into a contract with the facility to provide nurses as needed on Jan. 20, 2022. The company supplied staffing and submitted biweekly invoices. In November 2022, the facility operators stopped paying the invoices, according to the lawsuit.
In January 2023, NurseRight received a check for $26,000 which was applied to the oldest outstanding invoice, according to the lawsuit.
An attorney for NurseRight declined to comment on the lawsuit.
In another lawsuit, McHenry County Judge Kevin Costello entered a default judgment on Aug. 31 in favor of HealthPRO Management Services LLC for almost $20,000.
The total amount includes $16,125 is for services provided, $2,602 for attorneys fees and $471 to cover court costs, according to the judgement.
HealthPRO entered into a contract with Hearthstone for therapy management services on Sept. 13, 2021, “to provide its residents with physical, occupational and speech therapy,” according to the contract on file in the courthouse.
The agreement states that HealthPRO would submit monthly invoices for payment and that they would be paid within 30 days.
Hearthstone is accused of not paying HealthPRO $19,500 “for services rendered from about December 2022 through February 2023,” according to the lawsuit.
“HealthPRO has made repeated demands on the Defendant for payment of the amount due under the agreement for management services rendered but Defendant has failed and refused to make said payment,” according to the lawsuit.
Attorneys for HealthPRO did not return request for comment.
Hearthstone provided a statement to the Northwest Herald saying its “focus is on ensuring the safety and well-being of our residents” and that it is “taking significant steps toward independence and sustainability as a nonprofit organization ... diligently managing our relationships with vendors, contracts and local leadership.”
The Hearthstone statement continued: “Similar to many other nonprofit healthcare organizations, we have encountered financial challenges from the [COVID-19] pandemic including canceled fundraisers, reduced donations, staffing strains and heightened expenses for Personal Protective Equipment (PPE) and staffing needs. We want to assure everyone that we are actively addressing these issues and are committed to overcoming these obstacles.”