Glendale-based North Shore Healthcare will take over operations of 28 longterm care facilities in Wisconsin previously managed by Milwaukee-based Fortis Management Group, under a proposal submitted to the Milwaukee County Circuit Court.
Michael Polsky, the receiver for Fortis Management, announced today he is seeking court approval of an agreement to transfer operations of 64 facilities previously managed by Fortis Management to four new operators.
The company, which runs 65 nursing homes and longterm care facilities in six states, filed for receivership in July.
Under the arrangement, North Shore Healthcare will assume operations of the 28 facilities in Wisconsin; Kentucky- and Florida-based Prestige Care will take over 12 facilities in Michigan; Illinois-based Villa Health Care will operate 8 facilities in Minnesota; and California-based PNW will assume operations of the 16 facilities in Washington, Oregon and Idaho.
The new operators have each agreed to hire “substantially all of the 6,000 employees” at the 64 facilities and are “in a strong position to assume and continue the quality care provided to residents” who live there, Polsky said in a news release.
Polsky said talks are still underway regarding securing a new operator for a facility in Washington.
“These new operators are all able to assume the financial responsibility for the future operations of these facilities and continue to provide a high level of clinical care to the residents and their families,” Polsky said.
Polsky said each of the operators has started the steps to secure regulatory approval for the transition on a state-by-state basis, with some approvals expected as soon as Oct. 1.
“Under the circumstances, due to the ongoing operating losses incurred from the operations of the facilities, the receiver believes that the transfer of these facilities to the new operators as soon as possible is in the best interests of all involved,” Polsky said. “This proposal will help provide continued care, preserve substantially all of the jobs and obtain the best value for the creditors under the circumstances.”
Fortis Management announced plans in August to close its downtown headquarters at 111 W. Michigan St. by the end of September 2018 and eliminate all 250 positions there in two phases.
