Skilled Healthcare — a Foothill Ranch-based owner, operator and supporter of 101 nursing-care facilities — has put itself and its assets up for sale. Man, I wish I could get my hands on these facilities.
Last year, Skilled Healthcare agreed to pay $50 million in a lawsuit settlement over staffing at its California nursing homes. That is what I call getting off easy. In fact, a jury had awarded $677 million to former Skilled clients for staffing-law violations.
The problem is that the people living in these facilities have no say over the management or the ownership of the places where they live. They are, from an economic perspective, casino chips who will now be traded to a new player. No one can say what will happen in terms of quality or staffing or leadership.
It is really quite medieval.
Skilled Healthcare operates in California, Iowa, Kansas, Missouri, Nebraska, Nevada, New Mexico and Texas: 74 skilled nursing facilities, 22 assisted living facilities and leases out 5 nursing homes to others. All told, the homes hold 10,700 licensed beds. Also, Skilled provodes hospice and home health care in California, Arizona, Idaho, Nevada, Montana and New Mexico.
Skilled announced Tuesday that it had hired investment bankers from J.P. Morgan, “to assist the company in exploring strategic alternatives to maximize stockholder value, including a potential sale of the company’s real estate assets or the whole company. While the company maintains a positive outlook for its performance as a standalone entity, its Board of Directors has recognized the current favorable market conditions and determined that a strategic transaction may enhance stockholder value. However, there can be no assurance that the Board of Directors will ultimately conclude that a strategic transaction is in the best interests of the Company or its stockholders at this time, or that the exploratory process will result in a transaction being consummated. No timetable has been set for completion of the Board of Directors’ review.”
If you in the market to buy this company, you can read more HERE