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Virginia CMS Terminates Princess Anne Nursing Home’s Medicaid and Medicare Agreements

Modern healthcare facility emphasizing safety and regulatory compliance

News Summary

The Centers for Medicare & Medicaid Services have terminated Princess Anne Health and Rehabilitation Center’s federal provider agreements due to persistent safety and compliance failures. Recent inspections revealed severe violations including resident neglect and inadequate emergency responses, leading to a low 1-star rating. The facility’s owner ties to struggling networks raise concerns about systemic issues in Virginia’s nursing home sector. Current residents will need to be relocated within 30 days, prompting calls for increased oversight and accountability to prevent future safety failures across the industry.

Virginia Beach – The Centers for Medicare & Medicaid Services (CMS) has made the unprecedented decision to terminate Princess Anne Health and Rehabilitation Center’s Medicare and Medicaid provider agreements, effective August 27, 2025. This marks a significant moment in Virginia’s healthcare landscape, as it is the first time in three years that a nursing home has been cut off from federal participation due to safety and compliance failures.

The termination comes after the facility failed to meet essential health and safety requirements mandated by Medicare. Recent inspections from the Virginia Department of Health (VDH) highlighted troubling violations, including a lack of adequate supervision and care for residents, which led to substantial injuries. The February 2025 inspection revealed alarming instances where residents were found unattended and severely injured, raising serious questions about the facility’s ability to maintain a safe environment.

A follow-up inspection in June 2025 confirmed five repeat violations, further indicating that Princess Anne did not implement necessary corrective measures to address previously identified issues. The August 2025 inspection reported even more severe findings, uncovering instances of serious resident neglect and inadequate responses to medical emergencies, resulting in hospitalizations of multiple residents.

Currently, Princess Anne Health and Rehabilitation Center holds a 1-star quality rating from Medicare, placing it in the lowest performance category when compared with other facilities at both state and national levels. This low rating reflects not only the current operational failures but also ongoing systemic issues within Virginia’s nursing home sector.

The facility is owned by Lifeworks Rehab, which has ties to Medical Facilities of America (MFA). Reports suggest interlinkages among struggling facilities operated by the same ownership group. Virginia features only one Special Focus Facility (SFF) among its 290 certified nursing homes, a statistic that underscores systemic problems within the state’s nursing home industry.

The management structure of Princess Anne includes multiple LLCs and trusts, allowing owners to derive financial benefits from residents’ insurance payments while sacrificing the quality of care provided to those residents. In addition to serious operational issues, the facility has previously received citations for insufficient staffing levels and inadequate supervision. There have been reports of employees hesitating to communicate issues during inspections for fear of losing their jobs, which exacerbates the challenges in ensuring the safety and care of residents.

As a result of the termination of federal funding, current residents who rely on Medicare and Medicaid must be relocated to alternative facilities within 30 days. This urgent demand for relocation adds an additional layer of stress and uncertainty for both residents and their families.

Experts in the healthcare field have indicated that the action taken by federal and state agencies represents a final resort to protect vulnerable populations after repeated violations. With the operational collapse of Princess Anne Health and Rehabilitation Center, Virginia state health officials are exploring all avenues for further actions regarding the facility’s licensure in addition to the federal sanctions already imposed.

The troubling situation at Princess Anne Health and Rehabilitation Center serves as a wake-up call regarding the broader issues of nursing home ownership and accountability. The drastic measures prompted by this incident have fueled ongoing discussions about the need for improved regulatory oversight and accountability measures across Virginia’s nursing home industry. Stakeholders are now calling for substantial changes to ensure the safety and quality of care for residents in need.

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HERE Resources

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STAFF HERE VIRGINIA BEACH WRITER
Author: STAFF HERE VIRGINIA BEACH WRITER

VIRGINIA BEACH STAFF WRITER The VIRGINIA BEACH STAFF WRITER represents the experienced team at HEREVirginiaBeach.com, your go-to source for actionable local news and information in Virginia Beach, Virginia Beach City, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Virginia Beach Neptune Festival, East Coast Surfing Championship, and the American Music Festival. Our coverage extends to key organizations like the Virginia Beach Chamber of Commerce and Visit Virginia Beach, plus leading businesses in tourism and defense that power the local economy such as the Virginia Beach Convention Center and Northrop Grumman. As part of the broader HERE network, we provide comprehensive, credible insights into Virginia's dynamic landscape.

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