Quality Care Properties (NYSE:QCP) has signed an accord to acquire leadership as well as Ownership of Assisted Living, Skilled Nursing, Homecare Business and Hospice from HCR ManorCare, Inc. (HCR). Following the transition, HCR will see a better stability as well as flexibility in addressing the post acute care industry quickly. HCR will focus on better patient care in the healthcare sector under the leadership and ownership of QCP.
As per the agreed terms of the deal, both the companies will effect the smooth transition through a pre-planned reorganization. HCR will submit an application for protection under Chapter 11 of the US bankruptcy code. However, the operating subsidiaries of HCR will be excluded from the bankruptcy filing. Therefore, the bankruptcy filing will not have any impact on the operations of subsidiaries and patient care.
Under the terms of the agreement, the suppliers, vendors, creditors and employees of HCR will be paid normally. The transition is subject to regulatory approval and the nod of bankruptcy court expected in Q2. The entire operation is expected to be completed in Q3 of 2018.
The senior vice president of QCP, Ms. Laura Linynsky, and Mr. Guy Sansone, Chairman and Managing Director of Healthcare Industry Group at Alvarez and Marshal, will act as consultants of QCP to closely coordinate with the management team of HCR ManorCare for a smooth transition.
Following the smooth transition, Mr. Sansone will assume the charge as the chief executive officer at HCR ManorCare. Ms. Laura Linynsky will act as the interim Chief Financial Officer at HCR ManorCare.
According to Chief Executive Officer of QCP, Mr. Mark Ordan, the mutually agreed accord between the duo ensures a smooth transition and provides flexibility and stability for the business.
Under the leadership of Ms. Laura and Mr. Guy, HCR ManorCare will continue to offer the existing rehabilitation services and long term care for the patients.
According to Mr. John R Castellano, the Chief Restructuring Officer of HCR ManorCare, the accord is a positive outcome for all of the shareholders of HCR ManorCare.