An East Coast-based developer making inroads in multiple healthcare sectors has been cleared to take over a struggling Iowa nursing home chain with 10 facilities.
A federal bankruptcy court judge this week approved the sale of QHC Facilities’ long-term care portfolio to New Jersey-based holding company Cedar Health Group, according to a report in the Iowa Capital Dispatch.
Cedar Health Group is part of a network of companies led by developer Mark Tress, according to the report. A request for comment by McKnight’s Long-Term Care News to Tress was not returned by production deadline.
Tress specializes in acquiring distressed properties. The company purchased a bankrupt Illinois hospital last year for $11.4 million with plans to reopen it.
QHC filed for bankruptcy in December amid several wrongful death lawsuits and allegedly still owes more than $700,000 in federal fines.
The sales terms prohibit QHC creditors who have claims against the company from pursuing those claims against Cedar Health Group, the report states. They can, however, continue to pursue their claims against QHC.
QHC’s long-term care portfolio includes eight skilled nursing and two assisted living facilities with a combined capacity of almost 750 residents.
The facilities are: QHC Mitchellville, QHC Winterset North, QHC Winterset South, QHC Madison Square, QHC Fort Dodge Villa, QHC Crestridge, QHC Crestview Acres in Marion, QHC Humboldt North, QHC Humboldt South and QHC Villa Cottages of Fort Dodge.
