The US Bankruptcy Court for the Eastern District of New York has approved RCA Healthcare Management to take over six Absolut Care nursing home sites, beginning with a counseling agreement beginning March 1 with the current owners of Absolut.
Buffalo Business First reported the news Last week.
Absolute filed for Chapter 11 bankruptcy protection last fall, citing a “crushing rent burden”.
“Not only has the high rent burden put a damper on debtors’ cash flow, it also hinders the ability of debtors to invest in upgrading their facilities,” the company said in a filing last year.
RCA is the purchasing entity and is led by Edward Fardenblum, who took 51% ownership of the six nursing homes owned by the McGuire Group through VestraCare, the Long Island, NY-based Fardenblum company, according to the publication.
The plan is for RCA to eventually take over operations at the Allegany, Aurora Park, Gasport, Orchard Brooke, Three Rivers and Westfield Absolut sites later this year. Ownership only applies to the operation of the facilities, while a separate company will continue to act as owner.
Fardenblum told Buffalo Business First that he plans to make a “seven or eight figure” investment in facilities, in addition to capitalizing in systems and people to improve quality.
“Our plan is to send a lot of staff to implement the changes; a robust audit process; and capital to improve physical factories, ”Fardenblum told the publication.
Four other Absolut sites are sold to Personal Healthcare LLC, Buffalo Business First reported.
Ciena Healthcare opens new $ 23 million SNF in Detroit
Ciena Healthcare opened the 160-bed Regency at Chene Nursing and Rehabilitation Center on February 20, the first to be built in the city of Detroit in at least 35 years. The Detroit News reported.
The $ 23 million project includes 46 private suites, 55 semi-private suites, four bariatric suites and a state-of-the-art rehab gymnasium, marking Ciena’s 40th location in Michigan.
Services include 24-hour nursing care and physiotherapy, occupational therapy, and speech therapy.
Tryko Partners Acquires Three Virginia SNFs, With Planned Investments of $ 9 Million
Tryko Partners acquired three SNFs in Virginia: the 307-bed Woodbine Rehabilitation & Healthcare in Alexandria, the 190-bed Lexington Rehabilitation & Healthcare in Richmond, and the 66-bed Westmoreland Rehabilitation & Healthcare in Colonial Beach.
The Brick, New Jersey-based private equity firm plans to invest nearly $ 9 million in renovations and programming improvements at the facilities. All SNFs have retained the services of Marquis Health Services, the healthcare subsidiary of Tryko.
“This purchase marks our foray into Virginia, and the combined number of 563 beds allowed us to immediately establish a significant footprint in this desirable market,” said Uri Kahanow, Tryko’s director of acquisitions, in a press release announcing the ‘OK. “For us, this region is a natural progression, given that we have a well-established presence of trained nurses in Maryland and other key markets from the mid-Atlantic to the north.”
M&T Bank, which previously worked with Tryko, funded the purchase of the transaction.