Senior Care Centers, a Dallas-based skilled nursing and assisted living operator, filed for bankruptcy this week. The company has 11,000 employees throughout Texas and Louisiana in more than 100 locations. All facilities will continue to operate without interruption and the filing should not impact patient care or worker salaries, according to a release.
The release noted “burdensome debt levels and expensive leases” as the reasoning for filing for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Northern District of Texas.
“After careful analysis, we determined that the protections afforded by the Chapter 11 process are the best way to address the company’s debt and costly leases while allowing us to continue to provide all the top-level care and support our residents deserve,” Kevin O’Halloran, the company’s chief restructuring officer, said via release. “All of our patients, residents and their families can rest assured they remain our number one priority.”
As a part of the release, Senior Care Centers announced “the implementation of a plan to strengthen the Company’s financial footing while allowing it without interruption to continue providing comprehensive care.” They are looking at each of their locations and determining their future , but said that care would continue at the locations “no matter who the operator is.”
The release highlighted “significant cuts in reimbursements from government agencies and private insurers while facing ballooning rent payments” in filing for bankruptcy.
“All of the actions we are announcing today have one clear and overriding goal – to ensure every single one of our patients and residents continue to receive safe and comfortable care now and in the future,” Michael Beal, Senior Care’s chief operating officer, said in the release. “This plan allows us to address certain financial issues while continuing to provide the critical care and support on which our residents rely while we work to transition certain communities to new operators.”