Eleven nursing homes operated by Massachusetts-based Next Step Healthcare have been placed in court-appointed receivership, with iCare Health Network in Connecticut hired to manage day-to-day operations.
A Middlesex County judge made the decision following news from Next Step’s landlord, companies affiliated with Cuarzo Healthcare REIT, that the operator is in severe financial distress, owing nearly $15 million in unpaid rent and fees owed mostly from 2022 and 2023. Another $3 million is owed to the lender, according to an article from the New Bedford Light.
Audits show insolvency, chronic late or missed rent payments since 2022, and poor inspection records which include cases of immediate jeopardy to residents.
Next Step disputed the claims in the New Bedford article, stating its finances are stable and improving. The operator said past rent issues were due to the pandemic and emphasized that resident care is continuing.
Michael Flanagan, a Kansas City lawyer and receiver for the 11 Next Step properties, has tasked iCare with stabilizing care and potentially transitioning the facilities to a new, permanent operator as state advocates call for close regulatory oversight, considering Next Step’s history of staffing and quality concerns.
ICare VP of Business Development David Skoczulek told the New Bedford Light that 22 representatives from the Connecticut operator were sent to the Next Step properties to meet with staff, and that the transition is going smoothly.
Next Step owns 14 nursing homes across the state, 11 of which are now in receivership; more than 1,000 people live in Next Step’s facilities. The next scheduled hearing in the receivership case is a status conference in April.
Companies featured in this article:
