Virginia Beach, VA — A Virginia Beach nursing home that announced plans to close this fall after losing Medicare and Medicaid funding is still operating under a state consent agreement, according to local and state regulatory reports.
Princess Anne Health & Rehabilitation Center remains open as of Nov. 27, 2025, despite an August action by the U.S. Centers for Medicare & Medicaid Services (CMS) that terminated the facility’s participation in federal programs over repeated health and safety violations. Federal officials previously described such a cutoff as “extremely rare,” according to regional reporting.
Federal funding cut triggered closure plan
CMS pulled the facility’s Medicare and Medicaid provider agreement in August 2025 after inspectors documented serious deficiencies tied to resident health and safety, industry reports show. The nursing home subsequently announced an Oct. 5 closure date because it could no longer receive federal reimbursements that cover most residents in typical nursing facilities.
Separately reported inspections cited neglect, injuries, and falls at the site, along with findings of inadequate staffing and failures to prevent resident harm. Families told local outlets they were concerned about safety and began relocating loved ones in the weeks after the termination notice.
State consent agreement keeps doors open
After the closure announcement, the Virginia Department of Health (VDH) entered into a consent agreement with the facility, allowing it to continue operating while it works through corrective steps. State regulators indicated the agreement outlines specific actions aimed at improving care quality and compliance.
Officials did not disclose the terms of the agreement or how many residents remain in the building. Monitoring is ongoing, and the facility continues to provide services under state oversight, according to recent local reports.
Financial strain without Medicare and Medicaid
Operating without Medicare and Medicaid reimbursements significantly alters a nursing home’s finances. Nationwide, those programs pay for a majority of nursing home residents, according to CMS data. Facilities in this situation typically rely on private pay or other non-federal sources, raising questions about sustainability and access for residents who cannot afford out-of-pocket costs.
Complaints, lawsuit, and broader scrutiny
The Princess Anne facility’s regulatory troubles mirror a broader uptick in nursing home complaints across Virginia documented in recent regional reporting. In September 2025, a lawsuit was filed alleging improper care at the Virginia Beach facility amid the closure announcement, according to industry sources. Details of that case were not immediately available.
For now, the consent agreement places the nursing home under heightened state oversight while corrective measures proceed. It also postpones the immediate disruption that a full closure would have brought for remaining residents and staff.
What to watch
Key questions remain unanswered: how long the consent agreement will remain in effect, whether the facility can meet state expectations, and what the path forward looks like without federal reimbursement. State officials have said monitoring will continue, and no federal updates had been made public as of Nov. 27.
The situation underscores a tension in long-term care oversight: federal sanctions can cut off vital funding quickly, while state mechanisms may keep a facility operating under strict conditions to protect current residents. Whether that balance ultimately improves safety at Princess Anne Health & Rehabilitation Center will hinge on the progress documented by ongoing inspections.
