Legacy Healthcare takes control of SD nursing homes in receivership

Jul. 14--It's been a long road for many nursing facilities in the state, but stability appears to be on the horizon for one group.

On July 1, Legacy Healthcare took over operations of the 16 remaining South Dakota nursing facilities in receivership.

Chicago-based Legacy is an affiliate operating partner of Cascade Capital Group. Cascade is a private health care real estate investment and management company, which oversees more than 135 facilities in 23 states, according to its website.

"We're managing the facilities, Cascade is the landlord," said Connie Ortega, vice president of operations for Legacy Healthcare. "It's a joint interest."

The names of each of the facilities has been changed to reflect the new ownership. Avantara is a brand within Legacy that denotes style or type of care, Ortega said.

As its first course of action, Legacy has begun work to stabilize the infrastructure at each location. That includes installing new roofs, boilers and other building renovations. Physical changes will take place over the next six months, before program development begins and community and state partnerships are lined up, Ortega said.

"Right now, our main focus is to attack the emergent needs at the buildings," she said.

The acquisition was something Legacy could not pass up, Ortega said. It allowed the company to create a second regional hub outside of its existing market, according to a news release.

"To get 16 facilities in one state is not an opportunity that comes around often," she said. "We were looking for a larger portfolio and (wanted to) have some impact in the state. It was an exciting opportunity."

A judge ordered on June 11 that Black Hills Receiver be allowed to transfer operations to a new, permanent owner.

The receivership was created in May 2018 to financially stabilize 18 nursing homes and one assisted-living center in South Dakota. Golden LivingCenters, in Texas, which owns the facilities, formed it when the former manager, Skyline Health Care, did not have the money to operate the facilities, was delinquent on rent and couldn't pay other bills, according to court documents.

Receivership is a legal process in which a person or group -- the receiver -- is appointed by a judge to oversee business operations and finances. It's sometimes used when businesses have financial issues.

For more than a year, the futures of the nursing facilities and their patients were unstable. But there are no current concerns about patients' welfare, according to Ortega. She chalks that up to great employees who kept faith throughout the process.

"Despite all the transitions these buildings have gone through, the staff in each one has maintained constant vigilance and care of the patients," Ortega said. "That really says a lot to the resilience and the strength of the workers. I can bring in equipment and a new roof, but what is the most difficult thing to find is the employees who have heart."

In November, the state approved the closings of nursing homes in Mobridge and Madison while under the management of Black Hills Receiver.

Of the 15 remaining facilities, nursing homes in the local area are in Groton, Ipswich, Milbank, Redfield and Watertown. There's also an assisted-living center in Milbank. Legacy has merged the two Milbank facilities.

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