On February 16, 2024, Bloomberg reported that Petersen Health Care a major owner and operator of assisted living and skilled nursing facilities is preparing to file bankruptcy. According to our analysis, Pedersen is one of the largest owner/operators of skilled nursing facilities in the United States with 63 known skilled nursing facilities in the current database. (See if your facility will be affected.)
Recently there have been skilled nursing homes that file bankruptcy and close their doors (sometimes without prior notice). However, multiple outlets (here and here) have reported that Petersen’s facilities will remain open and operating. This does not mean that you should not plan ahead and consider your options. A bankruptcy suggests that the company is having trouble paying its bills as they come due which could have an impact on the quality of care that is provided.
What does Bankruptcy Mean?
If Peterson does file for bankruptcy, it would allow the company to restructure its finances and operations under court supervision. Peterson could close under performing locations, renegotiate leases and supply contracts, and possibly sell off assets.
The company has stated that care at its facilities should continue uninterrupted. However, bankruptcies often lead to disruption, especially in the sensitive senior care environment. Staffing shortages, supply chain issues, and delayed payments to vendors could impact services.
For residents and families, the most worrying prospect is an outright facility closure. There is no indication at this time that any Peterson homes would shut down. But in previous nursing home bankruptcies, closures have occurred. Families should closely monitor communications from Peterson management in the coming days.
A bankruptcy suggests that the company is having trouble paying its bills as they come due which could have an impact on the quality of care that is provided. Peterson may need to make difficult decisions about staffing levels, equipment purchases, facility maintenance and other areas that directly impact residents in order to conserve cash. Families should be alert for any declines in care quality or changes in staffing levels. Assertive advocacy will be crucial to protect seniors’ well being if Peterson does enter bankruptcy.
Petersen Health Care Facilities- An Overview
While the Petersen Health Care website does not show a list of facilities, we have been able to identify 63 skilled nursing facilities that appear to be owned or operated by Petersen with a total of 5,508 licensed beds in two states: Illinois and Missouri. (Some new reports discuss the company being involved with nearly 100 facilities including both assisted living and skilled nursing in three states, Illinois, Missouri, and Iowa.) The facilities had a CMS overall 5-Star rating of 1.65 (with 5 being the best) and CMS indicated that abuse was either possible or actual at 22 of the 63 facilities.
Please look at this associated page that we developed that shows each of the nursing homes that we identified. There are also links to a detailed analysis of each of the facilities including a list of other nearby nursing homes.
While the possibility of Petersen’s bankruptcy does not mean that residents are in imminent danger, it is important that residents, friends, and family be aware that this is happening and consider what other options if any you may have.
