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Nation’s Largest Health Care Real Estate Investment Buys 338 Nursing Homes

Bloomberg News reported today on big news in the real estate world involving healthcare facilities and nursing homes. The country’s largest investment trust in healthcare real estate-HCP, Inc.-announced plans to buy 338 properties from Carlyle Group’s HCR ManorCare, Inc.

The REIT deal (real estate investment trust) is the largest in years, with the total sale worth $6.1 billion. That includes $3.5 billion in cash, $1.7 billion reinvested from existing debt, and $852 million in stock.

Many Illinois families are familiar with the sellers who operate hundreds of nursing homes under the ManorCare name. The 338 properties sold are all post-acute, nursing, and assisted-living facilities. The company operates properties in 30 states, including here in Illinois.

HCR ManorCare will continue to run the facilities under a long-term lease. The rents on the facilities will increase each year under the deal, and the buying company reserves an option of obtaining a 9.9% stake in the company.

An analyst explained that the CEO of HCP Inc. “has long indicated an interest in investing in premier nursing-home assets, and ManorCare represents such an operator.”

Our Chicago nursing home attorneys at Levin & Perconti will be watching the latest developments with interest to best determine how it may affect residents at these facilities. Our experience had shown that often the concentration of facilities has led to a drive to maximize profits-sacrificing care in the process. No matter who owns the facility, there is no reason for any senior to suffer in living conditions below a reasonable standard of care and comfort. Contact a nursing home attorney if you have any experienced with problematic care at one of these facilities.

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