May 15, 2018

Spectrum nursing home goes into receivership

The Crestfield Rehabilitation Center and Fenwood Manor in Manchester, one of the last skilled nursing facilities and rehabilitation centers operated by Vernon-based Spectrum Healthcare LLC, has entered into state-controlled receivership after sustaining serious financial losses, according to documents filed in Hartford Superior Court.

Spectrum Healthcare, which has twice filed for bankruptcy protection, has told the Department of Social Services that it "can no longer support and fund the operation of the facility," and said it was in "imminent danger" of not being able to afford payroll for its employees as early as the first week of May. It's uncertain what's been happening with payroll the last two weeks.

The company had operated six nursing homes in Ansonia, Derby, Hartford, Manchester, Torrington, and Winchester until it filed for bankruptcy protection in 2012 and again in 2016.

Two of the company's homes, Hilltop Health Center in Ansonia and Laurel Hill Healthcare in Winchester, closed as a result of the 2012 bankruptcy filing.

Since the 2016 bankruptcy filing, the company's other four homes have been in jeopardy. Torrington Health and Rehabilitation Center closed in September 2017. On April 10, U.S. Bankruptcy Court Judge James J. Tancredi ordered that Birmingham Health Center in Derby must close by June 10.

Park Place Health Center in Hartford, a 150-bed chronic and convalescent home, has been in state-controlled receivership since August 2017. The receiver, Jonathan Neagle, determined that the facility was viable to continue under new ownership, and, according to court documents, he is close to finalizing a sale with a preferred bidder.

Crestfield Rehabilitation Center and Fenwood Manor, located at 565 Vernon St., is described in court documents as a 95-bed "chronic and convalescent nursing home and a 60-bed rest home with nursing supervision."

Timothy Coburn, who was appointed as the facility's receiver May 2, said there were 112 residents living at the facility as of the latest census numbers Tuesday. Coburn said a significant portion of the residents — about 45 percent — are there for short-term rehabilitation.

Coburn wouldn't go into the financial losses that led to Spectrum Healthcare seeking the state's assistance in receivership, but said that Spectrum sought out state help when it realized it wouldn't be able to pay its employees.

Coburn said his role as receiver would be to oversee the facility and conduct a viability analysis, which he will turn into the court at the end of the month. He said Crestfield is a highly regarded facility, and said he was "confident" that it could continue operating under new ownership.

"This could be a very positive thing for the facility," he said.

Messages left for Spectrum Healthcare's chief financial officer and its lawyer weren't returned.

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