Athena Health Care Systems has lost federal Medicare funding for nearly 200 residents living at the Abbott Terrace Health Center in Waterbury, causing the company to prepare for the closure of the nursing home. The Centers for Medicare and Medicaid Services notified state officials and Athena that because of the “facility’s failure to meet Medicare’s basic health and safety requirements,” funding would be stopped as of Sept. 10 for any new patients and within 30 days for all patients. The unprecedented step by federal officials in effect will close the 205-bed facility because most of its residents are Medicaid or Medicare recipients and not private payers. It comes amid growing financial problems and legislators’ concerns about patient care at Athena facilities. Here’s what to know. Why did Abbott Terrace Health Center lose funding? Department of Public Health officials made several visits to Abbott Terrace over the first six months of this year, during which concerns were raised about the facility itself and patient care. The inspections showed staff shortages, particularly for nurses, large holes in the tile floors and at least one incident where an employee told a resident with incontinence problems “they could smell them in the hallway.” The federal Medicare website lists a 1-star rating for Abbott Terrace, with “much below average” health inspections and “below average” quality measures. How did Athena respond to those concerns? A spokeswoman for the company said the Department of Public Health had mandated updates to the building, particularly the flooring, and Athena invested $200,000 in renovating floors. The company had also “earmarked additional dollars” for further upgrades, the spokeswoman, Savannah Ragali, said. She did not specify an amount. “Our team did everything possible in the past several weeks to address the physical plant concerns identified by DPH,” Ragali said. “We have invested significant financial resources in returning our facility to compliance by upgrading floors, doors and other identified facility infrastructure. We believed that the identified issues had been successfully resolved.” Did CMS grant Abbott Terrace a stay? Following reports that CMS had granted a stay to Abbott Terrace, Ragali said the nursing home “has not been notified of any change to its status” and continues to prepare to close. When asked if a stay had been granted, state officials referred The Connecticut Mirror to CMS. A spokesperson from CMS declined to confirm or deny it, stating: “To protect the integrity of our survey process, we are unable to provide additional information at this time.” What will the closure mean for Abbott Terrace residents and staff? Residents have begun receiving discharge notices ahead of the closure, said Mairead Painter, the state’s long-term care ombudsman. Ragali said Abbott Terrace is looking for locations for its residents to move to and possible transfers to other Athena sites for its nearly 300 employees. “Residents who have voluntarily decided to discharge from the center are being discharged under their rights,” Ragali said. “Based on the research from our staff at Abbott Terrace, there are 110-skilled nursing beds within a 15-mile radius of Abbott Terrace, with zero beds available on a secure dementia unit.” Painter said her staff at the Office of the Long-Term Care Ombudsman is working with Abbott Terrace residents as well to ensure that their rights are being protected and preferences are taken into account. Department of Public Health Commissioner Manisha Juthani and Department of Social Services Commissioner Andrea Barton Reeves said the announcement does not mean that Abbott’s residents have lost their coverage. Residents will still be covered when they move to a facility that participates in the Medicare and Medicaid programs.