Two Minnesota nursing homes -- one in McIntosh and one in Evansville -- will be managed by the state Department of Health because of financial troubles in the homes.

The Bemidji Pioneer reports that Crestview Manor in Evansville and the McIntosh Manor in McIntosh will be taken over by the state because of the money problems of their owner, the Foundation for Rural Health Care of Fosston. Crestview is licensed for 42 beds and McIntosh for 45.

They will be in receivership, which only happens in emergency situations, primarily when the finances of a nursing home are insufficient to cover expenses, including payroll. In this situation, MDH sought to assume management of the homes when it learned that the financial institution holding the mortgages of the homes would not continue to advance money to pay for operating expenses.

"We have taken this step because the two homes are no longer able to meet their financial obligations," said Darcy Miner, director of the Compliance Monitoring Division at the state health department. "It is our responsibility to protect the health and safety of nursing home residents, so we needed to take this step to keep the homes open and functioning until a resolution can be found."

Options for the homes include finding new owners or closing one or both of the homes and relocating the residents to other homes.

In the coming weeks, the health department will evaluate the homes to determine if it is practical for them to remain open. The department hopes to conclude the receivership as quickly as possible while protecting the needs of the residents. By law, the receivership cannot exceed 18 months.