Investment Firm Takes Over Family-Run Nursing Home

When someone thinks of a “mom and pop,” they might think of a small town shop, solely owned and operated by a couple or by a family. The term evokes something not necessarily simpler, but more approachable, possibly family-oriented, and something that may count its role in the community as part of its identity. However, with an ever-growing corporate America, as well as globalization, mom-and-pop outfits are less common, especially in the more populated areas, and bigger companies swoop in and take over ownership, control and operation of stores, restaurants, and the like.

Unfortunately, nursing homes and long-term care facilities do not avoid this trend either. As time goes by and the demand for nursing health care increases with a baby boomer population that grows older and requires more support and care, there is more money to be made. Throw in the involvement of not just private insurance but of government programs like Medicare and Medicaid for the elderly, the poor and the infirmed, and there are even greater dollar signs on the horizon for nursing home owners and administrators.

There has been a corresponding growth in the involvement of holding companies that look to acquire nursing homes. These takeovers are not necessarily a bad thing so long as the quality of care remains at high levels, and the facility provides sufficient staffing so that no resident is neglected and each patient receives the treatment, food, water, and anything else they need. Unfortunately, some companies look to maximize revenue, and cut staff and other overhead in order to do that, which can cause problems for residents. And as has been reported in the news, there aren’t just takeovers, but new facilities have sprouted up to contend with the growing number of patients, and to seize that economic opportunity.

More Illinois Nursing Home Takeovers

Bigger company takeovers are certainly not new to the state of Illinois, but in recent news there has been another takeover of a family-run nursing home. Pritok Capital, which is based in Skokie, purchased Maple Manor Health Care and Rehabilitation for $3.5 million. Pritok is a private equity investment firm that according to its website specializes in investments in senior care in states like Texas, Minnesota, Illinois, Florida and others. Prior to the acquisition, the facility was run by the Blum family since its opening in 1964. A member of that family was administrator for the last three and a half decades, and upon his decision to retire, the facility accepted the takeover offer.

The same holding company also owns several other senior care homes. A new administrator will take over under the new ownership regime at Maple Manor. As the outgoing owner himself stated to the, “Nursing homes used [to] have a lot more families involved running them.” It remains to be seen how the new ownership and management runs Maple Manor going forward, and the level of care received by patients there. Hopefully there can still be that personal touch that a family-run facility provided to its patients for decades.

See Other Blog Posts:

Elder Care Business – Privatizing Nursing Home Care

The Push to Reduce the Use of Unnecessary Antipsychotic Medications

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