ManorCare files papers for bankruptcy, QCP will buy it
The other shoe finally dropped for the one-time largest nursing home chain in the country.
HCR ManorCare officials filed for bankruptcy March 4, paving the way for a company-saving purchase by its landlord, Quality Care Properties. ManorCare struggled to make lease payments to QCP for more than a year, missing hundreds of millions of dollars in rent installments.
The bankruptcy filing was foreshadowed just a few days earlier, when the two sides announced a breakthrough in negotiations. QCP was expected to immediately play a role in the daily operations of ManorCare's skilled nursing facilities, assisted living, hospice and homecare businesses.
Their purchase is expected to close in third-quarter 2018, company officials said. Guy Sansone, managing director and chairman of the Healthcare Industry Group at Alvarez & Marsal, was brought in immediately to lead the transition. He was expected to be named HCR ManorCare's new chief executive officer, while Laura Linynsky, QCP's senior vice president and a former chief operating officer of Sunrise Senior Living, was expected to become the interim chief financial officer.
QCP said that ManorCare's operating subsidiaries would not file for Chapter 11, and that the parent company's Chapter 11 filing would have no impact on residents or the subsidiaries' operations.
“We don't see this affecting patient care, employees or suppliers,” ManorCare spokeswoman Julie Beckert told McKnight's. Beckert added that the deal is expected to ensure financial stability that would protect employees, residents and various business partners — “and keep our three protable lines of business viable going forward.”