Bankruptcy Team Assists Nursing Homes Facing Financial Challenges
Our bankruptcy team successfully transitioned Hebrew HealthCare’s 257 bed nursing facility in West Hartford to a new owner as part of its bankruptcy reorganization process. Hebrew HealthCare and its four affiliates filed for Chapter 11 in August and immediately sought permission from the Bankruptcy Court to sell its skilled nursing facility. As with many skilled nursing facilities, Medicare and Medicaid rates were not keeping pace with the actual cost of providing care to its patients and residents. In December, the Bankruptcy Court approved the sale of the skilled nursing facility to The Hebrew Center for Health and Rehabilitation, an affiliate of National HealthCare Associates.
The sale of the nursing home puts the remaining Hebrew HealthCare businesses, consisting of a hospital, an assisted living facility, a community- based geriatric program and a doctor’s group, in a position to emerge from bankruptcy and operate as profitable businesses.