Reuters reported that nursing home landlord Quality Care Properties Inc has agreed to cut rents for HCR ManorCare. However, ManorCare, a national for-profit nursing home chain, already owes more than $300 million in back rent and acknowledged it will struggle to pay even the reduced amount, according to a regulatory filing. Toledo, Ohio-based ManorCare, with more than 250 skilled nursing and assisted living facilities across the United States, is struggling as government Medicaid and Medicare reimbursement rates fail to keep pace with rising costs. Quality Care, a real estate investment trust (REIT), relies on the nursing home chain for more than 90 percent of its revenues.
Quality Care was spun off in 2016 by larger REIT HCP Inc, which had acquired the ManorCare assets from private equity firm Carlyle Group LP in 2010 for $6.1 billion. Quality Care shares fell 3.4 percent to $13.54 on Tuesday.