Virginia Beach, Virginia — A nursing home that lost its Medicare and Medicaid funding last summer after regulators declared it unsafe is still accepting patients — and newly obtained records show state officials privately recommended denying its license renewal before reversing course.
Princess Anne Health and Rehabilitation Center in Virginia Beach had its federal certification terminated in August 2025, a rare and drastic action that can effectively force a facility to close. But while the federal government pulled funding, state regulators allowed the facility to keep operating under a consent agreement, a first-of-its-kind arrangement for a Virginia nursing home.
Now, internal emails and documents obtained through a public records request reveal that officials at the Virginia Department of Health recommended denying the facility’s license renewal — a recommendation that never moved forward.
A Pattern of Care Failures
Inspection reports from February through August 2025 documented dozens of violations at Princess Anne. Residents suffered fall injuries due to inadequate supervision. One patient was found in blood-soaked clothing after wandering away undetected. Another was discovered bruised and lying on hot asphalt. A third developed a pressure ulcer within five days of admission.
Staff members told inspectors they were short-staffed and, in their own words, “did not feel good” about the care they were providing.
The facility is part of the Lifeworks Rehab chain, which operates for Medical Facilities of America. The same corporate network runs multiple facilities in the Richmond area that have drawn serious regulatory scrutiny, including another Virginia nursing home that was placed on a federal watch list earlier this month after 11 residents were abused.
Obstruction Allegations and Disappearing Records
The regulatory standoff wasn’t quiet. VDH supervisors wrote to federal authorities in July 2025 about “significant challenges” inspectors encountered on-site. The department alleged that facility management instructed staff not to cooperate with inspectors, that documentation “disappeared” from clinical records, and that corporate representatives “threatened” employees.
Medical Facilities of America pushed back. The company accused one inspector of bias, claiming the individual called the Princess Anne administrator a “toddler” and had made unprofessional remarks at other affiliated facilities. VDH said it couldn’t comment on personnel matters.
A Consent Agreement That’s Being Tested
Rather than revoke the license, VDH entered into a consent agreement in October 2025 capping Princess Anne’s patient population at ten and requiring two consecutive inspection cycles with no violations before restrictions could be lifted.
According to industry reports, the facility failed two additional inspections after the agreement took effect.
April Dovel, who became the director of VDH’s Office of Licensure and Certification in November 2025, told reporters there are things she would have handled differently. “In future state, I would like to see the OLC move to a standpoint where we’re getting ahead of these types of concerns by addressing recertification surveys timely,” she said.
The facility is now appealing its federal decertification, arguing that the termination was partly the result of a delayed follow-up inspection by VDH itself. Dovel rejected that framing. “The onus is always on the provider agency to ensure they’re doing the right thing by the individuals that they serve,” she said.
For families, the situation is anything but clear-cut. Some said they want the facility shut down immediately. Others described their relatives thriving there and said a forced move would cause unnecessary disruption.
Families on both sides of the question are still waiting to find out what comes next.
Discover more from Skilled Care Journal
Subscribe to get the latest posts sent to your email.
