The federal government has imposed a penalty of $55,000 after the biggest nursing home in St. Louis shut down unexpectedly. However, experts predict that the actual amount collected will be less.

According to the St. Louis Post-Dispatch, the owners of Northview Village received a letter from the U.S. Centers for Medicare and Medicaid Services notifying them of the imposed fine.

The skilled nursing facility, with a capacity of 320 beds, shut down unexpectedly on December 15 due to financial struggles of its owning company. According to documents released this week, Northview was non-compliant from December 15 to 17, during which they surrendered their Medicare and Medicaid contracts.

According to the letter received from the federal agency, Northview can lower the $18,770 daily fine for the three-day period by 35% if they choose to forfeit their right to a hearing.

According to Richard Mollot, the executive director of the Long Term Care Community Coalition, an organization that promotes for the rights of long-term care residents, this is a common practice for the agency’s sanctions. He explained that fines are often lowered or waived altogether.

He stated that, based on the situation, he believes the fine is significantly lower than what the serious actions of this operator deserve.

The owners of the nursing home were unavailable for comment when contacted by the Post-Dispatch or The Associated Press on Wednesday.

The closure was chaotic, with many patients left with nothing but the clothes they were wearing, creating confusion and spurring outrage among residents and their families. Some were relocated without their medical records or medication lists.

A patient diagnosed with schizophrenia went missing for over three weeks before being located.

Adding to the difficulty of the shutdown, Northview accommodated a number of Medicaid recipients who were unable to be placed in alternative long-term care institutions, including individuals struggling with mental health and behavioral issues, as reported by advocates for the residents.

Marjorie Moore, executive director of VOYCE, the local program for advocating in nursing homes, stated that the outcome of the events appears disappointing.

In the previous month, U.S. Representative Cori Bush, a Democrat from St. Louis, urged for a federal inquiry into the proprietors and an evaluation of Missouri’s system for monitoring nursing homes.

As of Wednesday, it has not been reported that Bush’s office has received a response from the U.S. Department of Health and Human Services regarding any actions taken on Northview.