Must-Reads: Fortis in Receivership, SNFs’ Cloudy CCRC Future
Each week, we round up the most-read stories on Skilled Nursing News in one place — perfect for catching up on the top headlines you may have missed amid the health care reform collapse and other news out of Washington.
Fortis Management Group, an operator of 60 skilled nursing facilities in the Midwest and Pacific Northwest, filed for receivership earlier this month, signaling trouble for Milwaukee-based management company. The properties last changed hands in 2015, when a group of investors led by Formation Capital bought the U.S. assets of Canada-based Extendicare.
Faced with serious skilled-nursing headwinds, continuing care retirement communities (CCRCs) have more or less halted the expansion of skilled units at their facilities, focusing instead on assisted and independent living units. One operator told SNN that if the firm could do it all over again at one CCRC, the amount of skilled nursing beds would have been much lower.
SNN took a look at the highest-paid executives in skilled nursing, with Quality Care Properties’ (NYSE: QCP) CEO Mark Ordan easily taking the top spot ahead of Kindred’s Benjamin Breier.
And finally, SNN reported on rumors that the Carlyle Group, a New York City-based private equity firm, is gearing up to sell a German chain of nursing homes for up to $1.1 billion. Carlyle’s European play comes amid swirling rumors back home about the future of HCR ManorCare, the Toledo, Ohio-based SNF chain that Carlyle has owned since 2007. The operator on Friday acknowledged that it had received a badly needed cash injection from another private equity firm, but the parties remained quiet about whether it would help ManorCare resolve its ongoing conflict with landlord QCP.