Comprehensive Healthcare may be forced to close unless the owners are allowed to sell seven nursing homes, according to a report on Wednesday from TribLive, the website of the Pittsburgh Tribune-Review. Comprehensive currently operates 15 facilities.
The seven facilities involved in the sale have a combined 747 beds, according to the report.
The U.S. Department of Labor (DOL) is attempting to block the $56 million deal to sell the seven facilities to Kadima Healthcare Group, alleging that Comprehensive wants to unload assets before its trial regarding back wages and overtime – the trial was initially scheduled for this month, according to the article.
On Wednesday, the parties appeared before U.S. District Judge William Stickman IV, who said he expects to have a decision on the issue within the next week.
Ephram Lahasky, an owner of Comprehensive, has a separate business relationship as a 5% owner in six facilities operated by Kadima in eastern Pennsylvania, the report found. In deposition testimony, Lahasky said that the sale to Kadima is due to the financial struggles of the facilities and is not related to the DOL action, according to the TribLive report.
Government lawyers said that while Comprehensive’s owners will not receive cash proceeds from the sale, they may benefit from the elimination of more than $20 million in personal liability for the current outstanding $46 million loan on the properties, the article stated.
The DOL is attempting to recover as much as $40 million in unpaid back wages and overtime and potential damages.
Lawyers for Comprehensive, meanwhile, say that the DOL has no authority to block a sale to satisfy a future debt, according to the TribLive report.
Skilled Nursing News reached out to Comprehensive and Kadima for comment and did not receive word back at the time of publication.
Companies featured in this article:
Comprehensive Healthcare, DAC Acquisition LLC, Diversicare Healthcare Services, Kadima Healthcare Group, Pittsburgh Tribune-Review, TribLive
