ManorCare CEO steps down, QCP grants more time for receivership response
On the same day that HCR ManorCare announced that its president and CEO is stepping down, Quality Care Properties said that it is giving ManorCare more time to respond to its request that an independent receiver be appointed to oversee the company's assisted living and skilled nursing facilities.
Paul Ormond, who had led Toledo, OH-based ManorCare for more than 30 years, will be succeeded by Steve Cavanaugh, the company's executive vice president and chief operating officer, ManorCare said Monday. Cavanaugh has a 25-year tenure with the company, previously holding positions such as vice president of corporate development and chief financial officer.
“Paul has been one of the best leaders in all of healthcare for many years and a tremendous mentor and role model for me throughout my career,” he said in a statement. “It is truly humbling and inspiring to have the opportunity to succeed him in the CEO role.”
As McKnight's Senior Living previously reported, Bethesda, MD-based QCP filed a complaint against HCR ManorCare on Aug. 17, exercising a provision in its lease agreements that enables it to ask for receivership, since ManorCare had defaulted on its rent obligations. At the time, ManorCare called QCP's action “hostile” and said it had made a good faith effort during master lease negotiations.
QCP said Monday that HCR ManorCare still owes $385 million in rent and other obligations after paying approximately $23 million for August and about $17.6 million for September.
The companies now will continue discussions through their restructuring advisory firms, subject to court approval, QCP said. The real estate company said it also is conferring with advisers about remarketing activities related to QCP facilities leased to HCR ManorCare. In August, QCP said that if the court granted its request for an overseer, it would work with the receiver to transition ManorCare's properties to new owners or operators.
“Under Steve's leadership, HCR ManorCare will continue to work with QCP to find a consensual solution to the challenges facing the two companies,” a ManorCare spokeswoman told McKnight's Senior Living.
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.