3 More Dycora Skilled Nursing Facilities Placed in Receivership

Three more skilled nursing facilities operated by Dycora Transitional Health & Living were placed into receivership on Thursday, bringing the total under third-party supervision to 11.

The Thomas Seaman Company was appointed receiver for the three latest properties — located in Fresno, Shafter, and Stockton, Calif. — by the San Joaquin County Court. Affiliates of Golden Living will provide operational support during the transition period, Wanda Prince, senior vice president for Golden Living, said in a release announcing the receivership.

The three affected facilities are Golden LivingCenter Shafter, Dycora Transitional Health & Living — Community Care, and Golden LivingCenter Hypana.

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The Business Journal first reported the news of the California receiverships.

The news comes on the heels of a similar action in Wisconsin, where eight SNFs operated by Dycora were placed into receivership earlier this month.

Dycora co-founder and CEO Julianne Williams said the decision to focus on a smaller geographic footprint was necessary due to market demands in a statement provided to Skilled Nursing News; the operator still has 16 other facilities in the Golden State.

“The Medicaid reimbursement challenges in Wisconsin were a major factor in our decision making process and the three California locations were tied to [the] Wisconsin master lease agreement,” Williams said. “We have notified those employees who will be directly impacted by this change in management and will ensure a smooth transition to the state appointed receiver.”

The three affected facilities employ almost 300 people, and plans are in place to ensure that payroll and benefits continue without interruption and that vendors are paid for their services on a timely basis, the release stated.

Receivership proceedings generally allow third parties to take over troubled operations on a caretaker basis until the business can be sold to a new go-forward operator. Receivers, typically appointed by state courts, can pay vendors and employees, receive reimbursements, and care for residents as normal during the process — with the ultimate goal of maintaining business as usual for as long as possible.

Dycora will continue to operate in California, the statement from Williams indicated, with a focus on strategic acquisitions and partnerships.

“We believe releasing the facilities to a receiver is the best way to facilitate an orderly transition of operations,” Williams said in the statement. “This process will ensure that residents are not displaced and allow our caregivers the ability to continue to do the work they love — caring for our nation’s elderly.”

An affiliate of Golden Living, which owned the properties in Wisconsin, was retained by a receiver for support in the Dycora receivership in the Badger State. Golden Living owned the properties in Wisconsin through multiple affiliates, though it’s not clear that applies to the three SNFs in California.

“Golden Living is made up of a qualified team, and they will come to these facilities to provide support as the facilities stabilize the operations and care for the residents who make their homes there,” Thomas Seaman, principal of the receiver, said. “Our joint goal will be to provide the resources, support, and expertise needed to support the facilities as they focus on delivering quality care and services to residents.”

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