Quality Care Characteristic Inc. (NYSE: QCP)has actually submitted a claim looking for to appoint an independent receiver to manage operation of 292 of its experienced nursing and helped living/memory care facilities currently operated by HCR ManorCare Inc., its largest renter.
The company started the legal action in California State Court, requesting the visit of an independent receiver to protect the value of Quality Care’s facilities, in spite of HCR ManorCare’s defaults under the lease.
As previously reported, HCR ManorCare is in default of lease arrangements with the Quality Care Characteristics. The business and HCR ManorCare concurred in the lease that the business would can designate an independent receiver to operate the centers in compliance with the lease if HCR ManorCare defaulted, according to Quality Care.
If the court accepts designate an independent receiver, Quality Care prepares to shift its homes to brand-new operators, or look for a purchaser.
Quality Care stated all its facilities stay open and are anticipated to continue to provide continuous patient care.
“HCR ManorCare has refused QCP’s demands to select fully independent directors and officers to manage the skilled nursing and helped living/memory care services at centers owned by QCP,” the REIT said in a ready declaration.
Quality Care added that it believes HCR ManorCare is “strained by irreconcilable possible or actual disputes of interest, including responsibilities to sibling companies in the HCR ManorCare group, individual claims against the HCR ManorCare group and possible individual exposure to HCR ManorCare and/or its stakeholders.”
HCR ManorCare countered in a ready statement to workers, saying that it intends to “intensely” contest the legal action.
Quality Care Residence was formed in 2016 when HCP Inc. (NYSE: HCP) spun off HCR ManorCare and other health care-related properties. While freeing itself from ManorCare made it possible for HCP to focus on higher-growth chances in its varied healthcare property portfolio, it saddled Quality Care Characteristics with the possibility of a challenging turnaround circumstance.
As of March 31, Quality Care’s holdings included 257 post-acute/skilled nursing homes, 61 memory care/assisted living homes, one surgical medical facility and one medical office building throughout 29 states. HCR Manor Care rents 292 of the 320 homes, accounting for 94% of QCP’s revenue.