By Maggie
Flynn | April 21, 2019
Three more skilled
nursing facilities operated by Dycora Transitional Health & Living were
placed into receivership on Thursday, bringing the total under third-party
supervision to 11.
The Thomas Seaman
Company was appointed receiver for the three latest properties — located in
Fresno, Shafter, and Stockton, Calif. — by the San Joaquin County Court.
Affiliates of Golden Living will provide operational support during the
transition period, Wanda Prince, senior vice president for Golden Living, said
in a release announcing the receivership.
The three affected
facilities are Golden LivingCenter Shafter, Dycora Transitional Health &
Living — Community Care, and Golden LivingCenter Hypana.
The Business
Journal first reported the news of the California
receiverships.
The news comes on the
heels of a similar action in Wisconsin, where eight SNFs operated by Dycora
were placed into receivershipearlier this month.
Dycora co-founder and
CEO Julianne Williams said the decision to focus on a smaller geographic
footprint was necessary due to market demands in a statement provided to
Skilled Nursing News; the operator still has 16 other facilities in the Golden
State.
“The Medicaid
reimbursement challenges in Wisconsin were a major factor in our decision
making process and the three California locations were tied to [the] Wisconsin
master lease agreement,” Williams said. “We have notified those employees who
will be directly impacted by this change in management and will ensure a smooth
transition to the state appointed receiver.”
The three affected
facilities employ almost 300 people, and plans are in place to ensure that
payroll and benefits continue without interruption and that vendors are paid
for their services on a timely basis, the release stated.
Receivership
proceedings generally allow third parties to take over troubled operations on a
caretaker basis until the business can be sold to a new go-forward operator.
Receivers, typically appointed by state courts, can pay vendors and employees,
receive reimbursements, and care for residents as normal during the process —
with the ultimate goal of maintaining business as usual for as long as
possible.
Dycora will continue
to operate in California, the statement from Williams indicated, with a focus
on strategic acquisitions and partnerships.
“We believe releasing
the facilities to a receiver is the best way to facilitate an orderly
transition of operations,” Williams said in the statement. “This process will
ensure that residents are not displaced and allow our caregivers the ability to
continue to do the work they love — caring for our nation’s elderly.”
An affiliate of Golden
Living, which owned the properties in Wisconsin, was retained by a receiver for
support in the Dycora receivership in the Badger State. Golden Living owned the
properties in Wisconsin through multiple affiliates, though it’s not clear that
applies to the three SNFs in California.
“Golden Living is made
up of a qualified team, and they will come to these facilities to provide
support as the facilities stabilize the operations and care for the residents
who make their homes there,” Thomas Seaman, principal of the receiver, said.
“Our joint goal will be to provide the resources, support, and expertise needed
to support the facilities as they focus on delivering quality care and services
to residents.”
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