Articles Posted in For-Profit Homes

manorcare for-profit facilities

Remember the Big Payout to Nursing Home Chain, HCR ManorCare?

The for-profit nursing home chain ManorCare went bankrupt with $7.1 billion in debt in 2018 over neglect and Medicare fraud allegations. The group operates about 15 facilities located throughout the Chicago area, primarily under the Heartland, ManorCare Health Services and Arden Courts brands. Prior to the bankruptcy, the chain was owned by the Carlyle Group, who bought the real estate in 2007 for $6.1 million. According to the Washington Post, the chain couldn’t make the $472 million a year rent payment, so instead, left its financial ruin to the takeover company, Quality Care Properties. Residents were found neglected, uncared for and living with painful bedsores and fall injuries, and without barely enough staff. An analysis of violation reports and records from the Illinois Department of Health shows:

  • Staff at a South Holland facility failed to prevent a woman from getting bedsores, and an infection led to her untimely death in 2010.

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CMS Says U.S. Nursing Homes Should No Longer Allow ‘Most’ Visitors

Centers for Medicare & Medicaid Services (CMS) Administrator Seema Verma joined President Trump’s news conference on coronavirus on March 13 in the Rose Garden, where he declared a national emergency. Verma announced that guidance will be coming for U.S. nursing homes about harsher visitor restrictions. She also said the new restrictions now include “all visitors and non-essential personnel, with few exceptions, such as end-of-life situations.”

The U.S. Centers for Disease Control and Prevention (CDC) has said that visitors and healthcare personnel are the most likely sources of introduction of COVID-19, the disease caused by the virus strain, into a long-term care facility. Many facilities in Illinois have already imposed their own harsh visitor rules in hopes of slowing the spread of the fatal virus that is responsible for the death of 22 residents of a nursing home in Kirkland, Washington as of Wednesday, March 11.

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Troubled Rosewood Facilities Bought Up by For-Profit Lender

Greystone is the New York-based real estate, investment, and consulting firm set to take ownership over a chain of troubled Chicago-area elder care facilities currently branded under the name of Rosewood. The federal government has been in charge of Rosewood nursing homes after the previous owners defaulted on $146 million in mortgage loans, the largest default in the history of the government mortgage insurance program that provides financial support to 15 percent of the nation’s nursing homes. The previous owners, including Chicago-area rabbi, Zvi Feiner, were found guilty of improperly diverting millions of dollars in federally insured funds to other businesses and ultimately driving Rosewood into a financial crisis.

In December 2019, Greystone filed its licensing agreement with the Illinois Department of Public Health (IDPH). The group is a major lender to the nursing home industry with a $34 billion loan portfolio, making it the number-one HUD borrower in the country. Greystone also runs a group of nursing homes in Florida under the name Greystone Healthcare Management. Greystone will own and operate the facilities through a series of limited liability companies. A rebranding of the Rosewood home names is expected.

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