Following Petersen Bankruptcy, Some Nursing Homes Sold, More Placed in Receivership

One of Petersen Health Care’s nursing homes on Monday was placed in receivership, following the Illinois operator’s bankruptcy filing in March. 

The Courtyard Estates of Farmington nursing home will now be overseen by a court-appointed receiver, thanks to a deal brokered by the Bank of Farmington, according to a report from Peoria Public Radio. Attorney Michael Flanagan and Walnut Creek Management will be taking care of day-to-day management of the property.

Flanagan and Walnut Creek are already overseeing 10 other Petersen facilities, Peoria Public Radio said. The majority of Petersen facilities were bought by Cascade Capital Partners, a real estate management firm – the Farmington property was not among those that were sold.

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A string of sales were queued up for $136 million in July, with Petersen divesting a substantial portion of its facilities.

An independent ombudsman will be presenting a new report on conditions at Petersen nursing homes by Aug. 13; an earlier report flagged no major issues, NPR reported. Petersen is one of the largest nursing home operators in the country, with nearly 100 facilities across Illinois, Iowa and Missouri.

Skilled Nursing News reached out to Petersen Health, but had not received a comment by the time of publication.

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