Thirty-three Atrium Health and Senior Living facilities have gone into receivership and will be transferred to new operators, the company announced Monday.
Little Falls, NJ-based Atrium said it reached an agreement with its lender so that nine senior living communities and 23 skilled nursing facilities in Wisconsin, as well as one SNF in Michigan, could be transitioned in an orderly way.
“We have determined that the most effective way to stabilize the company is to seek the appointment of a receiver who will assume all responsibility for operating the company and put it in a stronger position for a potential, future transaction,” the company said in a statement. “This action will allow our business to continue operating during the receivership without any interruptions to the important care services provided to our residents and their families. Additionally, the receivership protects our ability to pay our dedicated employees and meet our vendor obligations going forward.”
Milwaukee attorney Michael S. Polsky of Beck, Chaet, Bamberger & Polsky, was appointed receiver on Friday.
“Our main focus at this time is to stabilize the company and ensure that residents continue to receive seamless quality care in the centers from the staff they have come to know,” he said. “This plan also helps ensure that all payroll and benefits are provided to employees and that vendors are paid for ongoing services on a timely basis.”
Polsky has retained Minneapolis-based consulting and management firm Health Dimensions Group to serve as operational and financial consultant during the receivership process.
Atrium also operates three senior living communities and nine SNFs in New Jersey, according to its website, but they are not part of the receivership.