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Private Equity Firm Gives up ManorCare Nursing Homes After 10 Years of Ownership

It looks like trouble for HCR ManorCare. The nursing home giant, the country’s second largest chain, was recently abandoned by the private equity firm that has owned the company for the last 10 years. The firm, Washington, D.C.-based Carlyle Group, had already sold off nearly all of the real estate associated with ManorCare in 2011.

Rumors of problems at ManorCare began over 2 years ago when the U.S. Justice Department filed a lawsuit against the chain for billing Medicare for ‘medically unreasonable and unnecessary services.’ While the chain has attempted to blame the fraudulent charges on a greedy few rather than on a corporate moneymaking scheme, that hasn’t prevented many high level ManorCare executives from leaving the company. Unnamed sources within ManorCare have recently revealed that the company owes close to $400 million to investors for senior loans. Senior loans are particularly important because borrowers are legally obligated to repay this type of debt to a lender before paying any other creditors. In light of these revelations, several vendors have recently abandoned relationships with ManorCare, a sign that the chain’s financial issues are leading to a bankruptcy filing and potential closure of facilities.

ManorCare Well Known but for Many of the Wrong Reasons
ManorCare is no stranger to the nursing home abuse and neglect attorneys of Levin & Perconti. In addition to financial issues, the chain has frequently faced lawsuits over allegations of abuse and neglect at their facilities. In 2011, a jury awarded the family of a deceased victim $91.5 million in compensatory and punitive damages against the nursing home.

In recent years, our firm has successfully handled numerous cases against ManorCare nursing homes and has secured verdicts and settlements against ManorCare for our clients, including a $2.9 million verdict. Our attorneys are experts at working with victims and their loved ones to seek justice for horrific incidents that have occurred in Chicago nursing homes as well as in facilities throughout Illinois.

Please, if you suspect that a loved one has been abused, neglected, or otherwise harmed in ANY nursing home or assisted-living facility, please contact our attorneys for a free consultation.

 

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