LAUREL, NEB. — After a period of closed doors and unanswered questions, the Laurel community is starting to speak about the Hillcrest Care Center. Due a combination of ongoing financial issues and a decline of residents impacting staff, Hillcrest Care Center was forced to shut down, but a city official and few concerned residents gave News Channel Nebraska the story behind the closing.

“It's been declining for several years now. Medicare and Medicaid reimbursements weren't keeping up with what the costs were on a daily basis," said Laurel City Administrator Daniel Kuhlman. "So, our financial uncertainties got a little out of control and forced the closure.”

Hillcrest is licensed to house 36 residents, but it only housed 20 in January.  With the number or residents declining, the city council decided to permanently close the center In March.

“When you have 20 residents in a 36 bed facility," said Kuhlman. "It is hard to keep the nursing staff on to support the lower number of resident.”

Some in the community, including former mayor Scott Rath, are frustrated and think the council mismanaged the financial side of the center. 

“Until January, we really were not aware of the trouble that the facility was in or the financial debt that it had occurred," Former Laurel Mayor Scott Rath said. "I think the community would have got behind it and potentially been able to salvage the care center."

Concerned Laurel resident Alesia Barker claims supporters had pledged to donate $280,000 to help save the center. She believes locals could have prevented Hillcrest from shutting down had the council notified the public earlier.

“We had a budget. We had a plan. One of the former staff had been in contact with DHHS," Alesia Barker said. "He was willing to work with us if we had a purchase agreement and a notice of sale and our budget and our operating plan, and they refused.”

“I don't know that I'd consider it mismanagement," said Kuhlman. "We sat down with an auditor and tried to figure out where we could cut costs in any way possible. A couple of the council members sat down with every department head, and the administrator tried to figure out where cost savings could come in, but the census was too low to sustain Hillcrest.”

Both sides believe the center became a hot topic because Laurel places such a high value on caring for the elderly. Barker says the situation shows the need to be active in the community.

“Residents need to be more active and they need to participate, and know what their city officials are doing," said Barker. "That's what I believe failed here to a degree. People just were too complacent, but then again, It was kept pretty quiet.”