HCR ManorCare says it will contest QCP's receivership request
HCR ManorCare says it will contest QCP’s receivership request
HCR ManorCare said it intends to “vigorously” contest the request that Quality Care Properties made to a California state court that an independent receiver be appointed to oversee ManorCare's assisted living and skilled nursing facilities.
“QCP has no credible party or plan for taking on HCR ManorCare's industry-leading role,” ManorCare told employees Friday in a letter obtained by McKnight's.
The letter followed the Bethesda, MD-based QCP's Thursday evening press release indicating that the real estate company was exercising a provision in its lease agreements with Toledo, OH-based ManorCare that enables it to ask for the receivership, since ManorCare has defaulted on its rent obligations.
“QCP believes the independent receivership agreed in the lease will address conflicts of interest at HCR ManorCare corporate headquarters, serve the interests of patients and residents, save jobs for facility employees and, ultimately, position QCP to deliver long-term value to its shareholders,” the real estate company said in the statement.
The ManorCare letter called QCP's action “hostile” and said it had made a good faith effort during master lease negotiations.
The legal complaint “is an insult to our frontline caregivers and the corporate staff who provide support to their coworkers in the field,” ManorCare told employees. Further, the company said, QCP's assertion that executives have conflicts of interest “grossly mischaracterizes the actions of our board, investors, management team and the confidential settlement discussions that have occurred between the two parties to date.”
QCP said that if the California court grants its request for an overseer, it will work with the receiver to transition ManorCare's properties to new owners or operators.
“Looking ahead, QCP intends to pursue a regionalization strategy that will offer new investment and new opportunities to local managers, capitalizing on the strong teams already working at the company's facilities,” the real estate company said.
In the meantime, all ManorCare facilities are open, and QCP said it expects care and services to be uninterrupted.
ManorCare serves more than 195,000 people annually at 59 assisted living communities, including independent living or memory care at some locations; 237 skilled nursing facilities; 108 hospice and home health agencies; and 50 outpatient rehabilitation clinics, according to a 2017 report from the company. Those properties and services employ more than 50,000 people.