Turnaround Corner—Troubled or Closing Senior Care Facilities

Here’s a list of possible turnaround opportunities for senior care facilities, ranging from troubled facilities that have lost or may lose Medicare/Medicaid licensing, to ones that have been shut down by the state, to places that plan to close their doors voluntarily for various reasons. This edition also includes five facilities in one Wisconsin county that have received several “immediate jeopardy” citations (and resulting fines) in the past three years.

1. From the Milwaukee-Wisconsin Journal Sentinel—Assisted Living Center Faces License Revocation

Name: Tamarack Place

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Classification: Assisted living facility (Wisconsin public directory listing for Residential Care Apartment Complexes)

Location: N84 W17147 Menomonee Ave., Menomonee Falls, Wisconsin

Number of Apartments: 84

Owner/Operator: Assisted Living Concepts

Situation: The state Department of Health Services is threatening to revoke the facility’s license for not providing adequate nursing services, along with other violations. Assisted Living Concepts has been plagued in the past couple of months with revoked licenses and other punishments in several communities it operates in Wisconsin and Indiana, following staffing or other health code violations.

Residents: Still in the facility.

2. From 10TV.com (Ohio)—Nursing Home to Close Doors, Leave Residents Homeless

Name: Muskingum County Home

Classification: Nursing home

Location: 3125 East Pike, Zanesville, Ohio

Number of Beds: 80 (no Medicare/Medicaid certification)

Owner/Operator: Muskingum County

Situation: The county-run nursing home will close its doors in two months, according to county commissioners, displacing its 72 residents. In order to get Medicare and Medicaid certification, it would need about $1-3 million in renovations; keeping the facility open would be “fiscally irresponsible.”

Residents: Currently in the facility, but likely will begin looking for new homes soon.

3. From the Times Union (N.Y.)—Cash Woes Rattle County-Run Nursing Home; May Seek to Privatize

Name: Saratoga County Maplewood Manor (New York Department of Health listing)

Classification: Nursing home

Location: 149 Ballston Ave., Ballston Spa, N.Y.

Number of Beds: 277 (all Medicare & Medicaid certified)

Owner/Operator: Saratoga County

Situation: The facility has a high Medicaid census (only 34 of its 255 residents are private-pay) and is running on huge deficits because of inadequate Medicaid reimbursements. Selling to a private owner is a possibility.

Residents: The nursing home is about 95% occupied and its residents don’t want to have to move out.

4. From the Wisconsin State Journal—Five Nursing Homes in Dane County Slapped with Immediate Jeopardy Citations

The following five nursing homes, all located in Dane County, Wisc., were fined a total of $137,781 for violations after racking up nine “immediate jeopardy” citations between 2009 and 2011. The county has 21 of Wisconsin’s 399 nursing homes. The facilities are all still open and running with no stated plans to close or sell.

(a) Name: Nazareth Health and Rehab Center (one star Medicare.gov rating)

Classification: Nursing home (for profit)

Location: 841 Jackson St., Stoughton, Wisc.

Number of Beds: 99 that are Medicare & Medicaid certified

Managed by: Health Dimensions Group

Situation: The nursing home was fined more than $4,000 by the federal and state governments after a resident fell numerous times, eventually breaking her pelvis.

Residents: No plans to relocate.

(b) Name: Karmenta Center (two star Medicare.gov rating)

Classification: Nursing home/skilled nursing facility (non-profit)

Location: 4502 Milwaukee Street, Madison, Wisc.

Number of Beds: 105 that are Medicare & Medicaid certified

Owner/Operator: Medical Rehabilitation Centers, Inc./Exceptional Living Centers

Situation: The nursing home was fined more than $9,000 by the federal and state governments after an August 2009 incident of improperly caring for a resident; it received two more immediate jeopardy citations in 2010 and was fined more than $31,000.

Residents: No plans to relocate.

(c) Name: Capitol Lakes Retirement Community‘s Health Center (two star Medicare.gov rating)

Classification: Continuing Care Retirement Community (non-profit)

Location: 333 W. Main Street, Madison, Wisc.

Number of Beds: 98 that are Medicare & Medicaid certified

Owner/Operator: Owned by/affiliated with Pacific Retirement Services, Inc.

Situation: The nursing home was fined more than $10,000 by the federal and state government after a resident died from a morphine overdose.

Residents: No plans to relocate.

(d) Name: Oak Park Place Madison‘s Oak Park Nursing and Rehab Center (three star Medicare.gov rating)

Classification: Continuing Care Retirement Community (for profit)

Location: 718 Jupiter Drive, Madison, Wisc.

Number of Beds: 100 that are Medicare & Medicaid certified

Owner/Operator: Oak Park Place, LLC

Situation: The nursing home was fined more than $65,000 by the federal and state governments after receiving citations for three immediate jeopardy violations in February 2009 involving improper resident care.

Residents: No plans to relocate.

(e) Name: Sunny Hill Health Care Center (one star Medicare.gov rating)

Classification: Nursing home (for profit)

Location: 4325 Nakoma Road, Madison, Wisc.

Number of Beds: 68 that are Medicare & Medicaid certified

Operator: FiveStar Senior Living

Situation: The nursing home was fined more than $13,000 by the federal and state governments after improperly caring for residents.

Residents: No plans to relocate.

5. Three Senior Living Communities Facing Foreclosure Following Loan Maturation

Three senior living communities located in Florida and Texas are facing foreclosure. Owned by Walton Street Capital subsidiaries and operated by Senior Lifestyle Corp., the properties’ mortgage lender, US Bank, has filed to foreclose on all three; they are currently in receivership. According to a November 2007 SEC filing from Wachovia Commercial Mortgage Securities, the assisted and independent living communities’ interest-only loans (totaling approximately $48.5 million) matured on May 1, 2012.

Court documents from the 393rd Judicial District Court show that US Bank, serving as trustee for Wachovia Bank Commercial Mortgage Trust and acting by and through CWCapital Asset Management, LLC, filed a petition on March 21, 2012 versus WSL Lewisville Investors V, L.P to foreclose on the Lewisville Estates facility. A receiver was appointed on May 14.

Other court documents show that US Bank then filed to foreclose on the Barrington property (vs. WSL Largo Investors V LLC) on March 23; a receiver was appointed in April. On March 28, US Bank filed to foreclose on Lake Forest Park (vs. WSL Lake Forest Investors V LLC), and a receiver was appointed on May 7.

(a) Name: The Barrington

Classification: Assisted living facility (for profit)

Location: 901 Seminole Boulevard, Largo, Fla.

Number of Units: 149 units according to a November 2011 Wachovia SEC filing; 50 licensed beds according to FloridaHealthFinder.gov listing.

Owner/Operator: WSL Barrington Largo, LLC/Senior Lifestyle Corp.

Situation: In receivership (see above)

Residents: In facility

(b) Name: Lake Forest Park

Classification: Assisted living facility (for profit)

Location: 2909 South 25th Street, Ft. Pierce, Fla.

Number of Units: 127 units according to an SEC filing; 79 licensed beds according to FloridaHealthFinder.gov listing

Owner/Operator: WSL Lake Forest Park, LLC/Senior Lifestyle Corp.

Situation: In receivership (see above)

Residents: In facility

(c) Name: Lewisville Estates

Classification: Assisted living facility (for profit)

Location: 800 College Parkway, Lewisville, Tex.

Number of Units: 160 units according to an SEC filing; 60 licensed beds according to Texas Department of Aging and Disability Services directory listing

Owner/Operator: WSL Lewisville Estates/Senior Lifestyle Corp.

Situation: In receivership (see above)

Residents: In facility



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