Saber Healthcare Group took over the operations of 10 Pennsylvania nursing homes from the non-profit Oak Health & Rehabilitation Centers, Inc.

Affiliates of Formation Capital will remain the landlords of the facilities.

The Philadelphia Inquirer first reported on the transaction.

The lease structure with the Cleveland-based Saber is “entirely new,” with an initial term of 10 years, Saber vice president of population health and business development Mike Demagall told Skilled Nursing News in an e-mail.

“Our deal with the landlord contemplates a multi-million dollar capital improvement plan for these facilities over the next two years, with some projects starting this summer,” he said. “Additionally, we are excited to bring staff education, clinical support, and compliance resources to these facilities.”

Oak Health’s landlords placed the chain into receivership September 2017 after missing financial targets and failing to make at least three rent payments totaling $10.5 million, the Inquirer reported. Oak Health was created in 2014 to take over 22 former Extendicare facilities.

Oak’s receivership is, “generally speaking,” not expected to affect how Saber operates in any way, Demagall said.

Saber took over the facilities between February 12 and April 1, the Inquirer reported. With the acquisitions, the company now operates 117 buildings in Florida, Indiana, North Carolina, Ohio, Pennsylvania, and Virginia, with more than 10,000 beds, Demagall told SNN.

Eleven other Oak Health homes are still in receivership under the management of receiver David Lawlor, the Inquirer noted.

Written by Maggie Flynn