SavaSeniorCare Leaving 8 States
Skilled Nursing News reported that SavaSeniorCare is selling some of their facilities. That is probably good news for their residents. As a nursing home lawyer for over 25 years, I can tell you SavaSeniorCare is one of the worse operators. The owner/operators are ruthless in litigation. They rely on arbitration agreements to avoid accountability. Discovery abuse with unnecessary delays and frivolous obstacles are the norm.
SavaSeniorCare is a national for-profit chain with billions in revenue. However, they cut corners and fail to provide safe staffing. The chain has high turnover in management. The facilities struggle to provide good care. The federal government has a pending False Claims Act case against SavaSeniorCare.
SavaSeniorCare’s new strategy is to consolidate its operations into two divisions with nursing homes in specific geographic regions. SavaSeniorCare plans to transfer the operations of 48 facilities. These facilities are in eight states. They hope to complete the transfer by the end of 2021. Properties in California, Colorado, Illinois, Kansas, Michigan, Mississippi, and Wyoming are set to change hands. I hope South Carolina will be next.
“The current state of the world brought on by the pandemic has caused us to closely examine our strategy, where we invest our resources and can achieve the greatest impact,” CEO Jerry Roles said. “We believe this decision will best prepare the company and our centers for the post-pandemic world, and allow us to continue our focus on our people, the residents who we are privileged to serve and our dedicated staff.”
SavaSeniorCare is working with its landlord, Rubin Schron, to find new operators for the nursing homes. Schron is a billionaire who owns a lot of real estate in New York. He makes millions from the real estate by charging exorbitant rent payments. The nursing homes run on less than ideal budgets as a result.
“The company will in turn make investments in remaining centers in three main areas: people, through increased incentives and benefits; care, in the form of infection preventionists, physician investments, and partnerships; and innovation, through new technology and equipment,” the company noted in a statement.
I hope the sake of the residents in Sava facilities that the new operators are better than the prior operators. I highly doubt it could get worse.