Prior to the Maple Crest discussion I addressed the subcommittee and complained that news of such a major event should have been released to the public before now.
This evening’s Boone County Board subcommittee on Health and Human Services released to the public the news that the Kensington Group of Morton Grove is selling their business interest in the Maple Crest Nursing Home to Nucare, Lincolnwood, Illinois.
The subcommittee became aware of the situation some weeks ago. The item was not discussed at last month’s subcommittee because the employees of Maple Crest had not be informed of the sale; they were informed until just two days ago.
The sales transaction is schedule to occur on January 1, 2012. The county owns the Maple Crest Nursing Home and managed the nursing home prior to leasing the facility to the Kensington Group. Technically the county board has a right of refusal and can refuse to transfer the lease for the land and building to the Nucare Group. The County Administrator, Mr. Terrinoni and States Attorney, Michelle Courier, with “due diligent” are reviewing new lease and will present evidence regarding Nucare’s suitability to succeed the Kensington Group.
A representative of Kensington Group was present and stated that the group is selling all of its portfolio of 14 nursing homes to Nucare. Kensington will maintain ownership and management of one nursing home in Rockford. Kensington also owns Northwoods in Belvidere. The explanation for selling was: The chief principal in Kensington, Mr. Bellows is 71 years old. The group sought financing for needed modernization of their fourteen nursing homes but were unable to obtain lending. Because of this and his age, Mr. Bellows decided to sell out.
Several members of the county board questioned the Kensington representative concerning why Kensington wanted an amendment to the lease just four months ago and did not mention they were considering selling?
The Nucare Executive Committee-- CEO, Chairman of Board and two Vice-Presidents-- discussed their company and their plans for Maple Crest. The firm has a sizeable line of bank credit ($17million) and arranged financing from GE Capital. The Kensington Group will also take back a debt position as part of the sale. As of yet detailed financial reports for Nucare and its related entities have not been submitted. Mr. Mattison (R. District 3) requested that a review of such financials be made.
The information below was obtained at Illinois Department of Health, at: http://www.idph.state.il.us/webapp/LTCApp/Holding_Company.jsp?facilityid=6005706
Some of Nucare’s Principals
Updates of additional information will be posting when available.