Nursing home chain Sun plans separation of operations, real estate holdings
Sun Healthcare Group Inc., one of the largest nursing home operators in the country, said Monday it plans to split itself into two publicly traded companies.
All of Sun's current operations subsidiaries, including its skilled nursing and rehab facilities, will continue to function under the name Sun Healthcare Group. Sun's real estate holdings and property portfolio will operate as a real estate investment trust (REIT) under the name Sabra Health Care REIT, according to a company statement. The new REIT will own the real estate now held by Sun and lease it back to the operations subsidiaries.
William A. Mathies, president of SunBridge Healthcare Corporation, Sun's inpatient services subsidiary, and the chief operating officer over Sun's operating subsidiaries, will become chief executive officer of the operating company. Sun CEO Richard K. Matros will lead the REIT. He will become its chairman and chief executive officer, according to the company news release.