• NGA was appointed receiver in Hamilton County Common Pleas Court to operate and recommend to the court the whether the facility would be closed, sold as a going-concern or some alternative outcome.
• This 68 bed skilled long-term care facility was operating at too low a census and collections on resident billings, both Medicaid and private pay, were too low for the facility to profit.
• Ownership was out of funds to continue the operation of the care facility and the operating entity was unable to continue its mortgage payments. These payments had been made for a number of months.
• A sale of 25 bed licenses had been undertaken, but the $500,000 proceeds had yet to be received.
• Vendor payments were being made to critical vendors, but many non-day-to-day vendors were so far behind in payment that many of them had placed the care facility on cash in advance of delivery.
• NGA sought to analyze the operations and determine if a profitable operation could be the result of significant changes to the operation.
• Conclusion was quickly drawn that the care facility would need to be sold. NGA attempted to sell the going-concern operation including the real estate. NGA obtained a number of interested in parties in the going-concern operation and real estate. The secure lender felt these offers would result in insufficient recovery on their loan.
• NGA sought a purchaser for the real estate and began to plan a shut-down of the care facility.
• NGA undertook to shut down the care facility and relocate the residents.
• All residents were relocated.
• NGA sold the remaining 43 bed licenses to a larger operator of nursing homes for cash.
• The real estate was removed from the receivership at the request of the secured creditor.