Sale of nursing home building nets big profit
Nevada Appeal had an article about the sale of the building where Evergreen Mountain View Health and Rehabilitation Center operates for $8.2 million from Evergreen’s parent company, Vancouver, Wash.,-based Evergreen Healthcare. Chicago based Aviv Asset Management bought the building and will keep the same management team. Evergreen took over management of the 146-bed nursing home in 2002. It bought the building for $5 million in 2005. So in less than 4 years, the value of the building itself (not the on going nursing home operation) increased by $3.2 million. some thing smells fishy about this deal.
Josh Kocheck, asset director for Aviv, said Aviv is a real estate business and will serve only as a landlord. He said people are concerned when a nursing home gets a new owner, but Aviv has no intentions of running a healthcare company. Evergreen Healthcare runs other nursing homes. It has 58 nursing homes concentrated in Western states.
Aviv owns about 125 nursing homes across the country, according to the company.
Evergreen Mountain View has had several problems with government agencies since its parent company started managing it. It was the only nursing home in the state that made the Centers for Medicare and Medicaid Services list of 131 worst nursing homes last year. As a “special focus facility,” the state checked the nursing home twice a year rather than the usual once a year from 2004 to 2008.
