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IRONWOOD -- Josephson Nursing Home was taken over by the state Friday.  

Licensing officials say the nursing home was not able to meet its payroll, lacked a licensed administrator and was recently cited by the state with "immediate jeopardy" because 21 of the 24 elderly residents on Medicaid were not receiving adequate care. 

“They’ve not been able to provide physical therapy, occupational therapy, or speech therapy for their residents who have that ordered by their physicians. They have had multiple problems with the state Medicaid agency. They owe the state a very significant amount of money,” said Director of the Bureau of Health Systems in the Department of Licensing and Regulatory Affairs, Mike Pemble.

That amount was $200,000 according to Pemble.

Pricilla Cross, the Acting Administrator at the nursing home, says she tried to correct the problems with a new financial advisor but soon realized the contracted therapy company was owed $58,000.

More than half of the money was repaid, but the contract was not renewed, and residents who needed the required therapy had to be removed in order to receive the necessary care.

“I’m very disappointed. This has been a long fight for us. We had issues previously with the old administration and the chief financial officer not paying vendors, not re-billing Medicare and Medicaid. At one point employee payroll taxes were not being paid,” said Cross.

State officials at the facility would not comment, but when asked where the elderly residents would be taken, Cross said there are no available beds in the area, and they will most likely be sent throughout the U.P. or bordering Wisconsin towns.

“My residents are counting on me to provide them with a place to live; they love it here, and it’s my responsibility to see to it that they’re taken care of,” Cross said.

“I didn't want to go...I still don’t want to go, but the circumstances are that I have to go,” said resident Virginia Thomas.

With Josephson closed, the 64 staff members will be out of a job.