The second attempt to sell a bankrupt retirement home chain in Iowa could be delayed again, as the current owner reportedly plans to close three of the 10 facilities.
QHC was to sell its portfolio to Cedar Health Group after a federal bankruptcy judge gave the green light to the deal in March. The sale did not materialize after one of Cedar Health Group’s attorneys raised concerns about some facilities losing Medicare funding due to quality of care issues, Iowa Capital said. dispatch. reported for the first time.
Shortly after, Blue Diamond Equities, a New Jersey-based private property management and management company, became the latest potential buyer for the 10 facilities, according to the report.
Then the Iowa-based operator told the court it planned to seek an “emergency closure” for three of its facilities: Sunnycrest Care Center in Dysart, QHC Humboldt South and QHC Mitchellville.
Reports from the Iowa Capital Dispatch found that the Humboldt South facility had a “soil problem” and that the Mitchellville and Dysart facilities were operating at “a seriously diminished census level, making it unprofitable to continue operations”.
But QHC still owes the federal government more than $2.1 million in fines and penalties for regulatory violations, as well as reimbursement of expedited and advance COVID-19 payments it received.
Blue Diamond also reportedly told the federal government that it does not plan to take Medicare certification for several of the homes.
QHC Management, the company that managed the Iowa facilities, filed for Chapter 11 bankruptcy before the end of 2021 following some of the largest federal fines imposed on any qualified nurse operator in the state.
The operator provides skilled nursing, restorative nursing, respite care, physiotherapy, long-term care, occupational therapy, palliative care, dementia care, Alzheimer’s disease and rehabilitation therapy in all of its establishments.
Married owners Jerry and Nancy Voyna took over the business after working “in corporate headquarters” for more than 20 years, according to the QHC website. Court documents show Nancy Voyna as CEO, when her husband died in June. The group was founded in 1977 as Quality Health Care Specialists Corp.
Their son, who inherited the business after the couple’s death, continued sales.
QHC claimed $1 million in assets and $26.3 million in liabilities in its bankruptcy filings.
QHC did not immediately return a request for comment.