The Hemingford Village Board of Trustees has voted to terminate its contract with Rural Health Development, the consulting and management firm which oversees Hemingford Community Care Center.

The Hemingford Ledger reports that the decision came after a town hall meeting held November 13 where the public was largely in favor of making the change. The board then approved and is currently advertising for an administrator for the care center. They are also pursuing Senior Insite Consulting, which services three nursing homes in eastern Nebraska, as a replacement for Rural Health Development (RHD). The termination of the contract with RHD requires a 60-day notice. RHD will remain at Hemingford Community Care Center until January 31.

An audit earlier this year found the nursing home was two years behind on its payroll taxes, which through negotiations, was determined to be $101,000.

Hemingford worked out an agreement with the IRS to pay off the delinquent payroll withholding taxes.

Half of that will be paid off with a 6-month, 4.75% interest $50,000 loan from the Bank of the West that is paid to the IRS for the taxes accrued in the first quarter of this year. The remaining $51,000 will be paid off by the village at a rate of $5,000 a month.

RHD blamed the delinquent taxes on on problems using the IRS electronic transfer service.