Signature HealthCARE officials say they are hoping to reach a deal to restructure the company’s financial obligations in the next four to six weeks, Louisville Business First reported on Wednesday.
Bankruptcy proceedings do remain a possibility, however, Signature CEO and co-founder Joe Steier told the publication.
Signature has been dealing with problems for some time now: One of the skilled nursing provider’s landlords, Omega Healthcare (NYSE: OHI), said Signature was behind on its rent by $10 million on an October 2017 earnings conference call. In its fourth-quarter earnings call, however, Omega reported progress in resolving the issues with Signature.
Omega and Irvine, Calif.-based Sabra Health Care REIT (Nasdaq: SBRA)— which also reported issues with Signature in its October earnings call — own approximately 85% of the facilities operated by Signature, Steier told Louisville Business First.
The primary factors causing the Louisville, Ky.-based provider to fall behind on its rent payments include several medical malpractice suits, mostly in Kentucky; low Medicare and Medicaid reimbursement rates; declining resident census; and increasing wages for health care workers, according to Steier.
“While Chapter 11 remains a possibility if the parties cannot consummate a restructuring, we do not believe a filing is imminent,” Omega CEO Taylor Pickett said in an emailed statement to Louisville Business First.
Written by Maggie Flynn
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