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A Lawrence nursing home's troubles have gone from bad to worse now that officials have followed through on a threat to withhold Medicare and Medicaid payments to subsidize the care of new residents.

"At this point, we plan to continue admitting residents even though we won't be getting paid right away," said Dick Boswell, administrator at Lake View Manor, 3015 W. 31st St. "I'm trying to get the state back in here as soon as possible for another survey."

State and federal officials imposed a "denial of payment" order after Lake View failed to correct all of the 15 deficiencies cited during a Jan. 28 inspection.

"They came back on March 1 -- we're down to three deficiencies now," Boswell said.

Boswell said he was confident Lake View would pass a third inspection.

But state and federal regulations guarantee only two inspections. For there to be a third requires the approval of the regional Centers for Medicare & Medicaid Services (CMS) office in Kansas City, Mo.

"We're waiting on CMS to let us know if they'll authorize another revisit," said Karen Sipes, spokeswoman for the Kansas Department on Aging. "We're told they're looking at it, but they've not given us the go-ahead."

Historically, CMS has been reluctant to approve third inspections for troubled homes, a group that includes Lake View and its predecessors: Cherry Manor, then Colonial Manor.

Attempts to reach CMS officials for comment Tuesday were unsuccessful.

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In January, state officials fined Lake View $5,000 after confirming reports that a disoriented resident had wandered from the building unnoticed. At the time, wind-chill temperatures were between 29 and 32 degrees.

Unless there's a third survey that shows the facility has fixed its problems, Lake View will not be paid for residents admitted after March 9. Without a third survey showing the center is OK, Lake View after June 9 will lose its Medicaid and Medicare funding.

"You can't run a nursing home without Medicaid and Medicare," Boswell said. "So if that happens, we'd be forced out of business."

Currently, Lake View Manor is paid about $120 a day for each resident eligible for Medicaid or Medicare.

Almost all of the home's 35 residents are on Medicaid. Only a handful are private pay.

Lake View's latest troubles began late last year when its then-director of nursing, Kim Lawing, filed an eight-page complaint with the Department on Aging. A subsequent survey resulted in the home being hit with 28 deficiencies, 13 of which were corrected before the inspection in late January.

In her complaint, Lawing alleged that Lake View co-owner Charles K. Pomeroy, rather than Boswell, was effectively running Lake View Manor despite lacking the credentials and proper licensing to make key decisions.

A former attorney, Pomeroy pleaded no contest in 1992 to a charge of felony fraud after being accused of forging a judge's signature while handling a man's estate in Shawnee County. Afterward, his law license was put on "indefinite suspension." It remains suspended.

Pomeroy denied acting as an administrator.

"I'm basically a payroll clerk," he told the Journal-World.

Sipes said Aging officials have met with Pomeroy and his parents, who own the Lake View property.

"State law says a convicted felon cannot have more than a 25-percent ownership in a nursing facility," Sipes said. "They have notified us in writing that Mr. Pomeroy's ownership does not exceed 25 percent."

Sipes said the department was still waiting on written assurances that Pomeroy was not acting as administrator.

"Our staff insisted they have a plan in place that prevents him from being involved in the day-to-day operation of the facility and they've agreed to that," Sipes said. "But we've not received written proof of that agreement."

Contacted by the Journal-World on Monday and Tuesday, Pomeroy declined comment.