Here’s a list of possible turnaround opportunities for senior care facilities, ranging from troubled facilities that are losing money, to county-run homes looking to privatize, to places that may need to close their doors for various other reasons.
South Florida Business Journal—Assisted Living Owner/Operator Seeking Chapter 11 Bankruptcy Sale of Assets
Name: Lenox on the Lake
Classification: Assisted living facility (FloridaHealthFinder.gov listing)
Location: 6700 W. Commercial Blvd., Lauderhill, Florida
Number of Beds: 139 licensed beds, all private-pay
Owner/Operator: FTMI Real Estate/FTMI Operator
Situation: The assisted living complex’s owner/operator, FTMI Real Estate and FTMI Operator, is seeking a Chapter 11 bankruptcy sale of its assets after filing for bankruptcy on Aug. 10, declaring total debt of nearly $29 million and assets of $19.6 million, says the Business Journal. The owner/operator entity has received a $13 million stalking horse bid from Miami, Fla.-based Shefaor Development. HUD currently holds the community’s outstanding debt of $25.8 million; $13 million is secured. If an auction is necessary, it will take place on Oct. 2 at the offices of Genovese Joblove & Battista, according to the article.
Residents: In the facility.
Name: Phoenix Rehab Nursing (non-profit)
Classification: Skilled nursing facility (Illinois Department of Public Health Listing, Facility ID #6016539)
Location: 615 W. Webb St., Carmi, Illinois
Number of Beds: 74 licensed beds; 54 are licensed for Medicare, and 20 are Medicaid/Medicare beds
Owner/Operator: Phoenix Rehabilitation and Nursing Care, Inc. (licensee name)/Phoenix Foundation of Southern Illinois
Situation: The Illinois Department of Employment Security has filed a $52,000 lien against the nursing home on the grounds of failure to pay unemployment insurance payments dating back to 2009, according to the CourierPress. The facility’s administrator has taken responsibility for the lack of payment, but placed blame on Illinois’ failure to make timely Medicaid payments to the nursing home. By law, the DES could seek foreclosure on the facility if the back payments, penalties, and interest aren’t paid.
Residents: Residents are living at the nursing home, but only about 40-50 of the beds are being used. Of those, about half are Medicaid patients, and the remainder are private-pay.
From the Pocono Record (Pennsylvania)—Debt Mounts at County-Affiliated Nursing Home; Faces Privatization
Name: Pleasant Valley Manor (non-profit)
Classification: Skilled nursing facility (Pennsylvania Department of Health listing)
Location: 4227 Manor Drive, Stroudsburg, Pennsylvania
Number of Beds: 174, 75% of which are reserved for Medicaid residents
Owner/Operator: Monroe County/Premier (management company)
Situation: The nursing home is facing mounting debt and could finish 2012 with millions of dollars in losses despite high occupancy levels, because of inadequate Medicare and Medicaid reimbursements. The county commissioners are entertaining the idea of selling the facility to a private enterprise.
Residents: In facility; 98% occupancy rate