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.
According to federal court documents, the sale could close as early as February. Still, the court-appointed receiver, the Long Hill Company, is likely to remain in place for another 12 months to assist with the transition.
Putting Profits Over Nursing Home Resident Needs
Rosewood facilities are repeatedly named on the IDPH list of quarterly nursing home violators, and a buyout like this is unlikely to spark a change in those poor reputations. In 2019, Rosewood homes called out for quality and care violations included:
- Rosewood Care Center of Moline
- Rosewood Care Center of St. Charles
- Rosewood Care Center of Alton
- Rosewood Care Center of Elgin
- Rosewood Care Center Galesburg
- Rosewood Care Center Inverness
- Rosewood Care Center Northbrook
- Rosewood Care Center of Peoria
Unfortunately, the nursing home abuse and neglect attorneys at Levin & Perconti know all too well that a buyout from a large for-profit company often results in a cycle of greedy ownership that leaves a trail of preventable nursing home abuse and neglect. Larger, for-profit operators ignore the needs of staff and residents who are left to suffer as vast sums of government-funded money is thrown into investments and corporate webs. The egregious financial and property exploitation in this buyout is another disturbing reminder that anyone with the right amount of money can gain authority in this industry, and keep earning even when a nursing home continues to struggle.
If someone you know has had their rights violated while receiving Rosewood services, or were abused or neglected during their recovery stay, the attorneys at Levin & Perconti want to know. Our attorneys are charged to hold nursing home owners, no matter how big, responsible for any violation of the Nursing Home Care Act.
Levin & Perconti: Legal Voice for Victims of Nursing Home Abuse & Neglect in Illinois
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