Trusted leadership for an industry where patient care and financial distress cannot coexist unchecked.
Healthcare businesses face financial distress under extraordinary constraints like patient safety obligations, regulatory oversight, staffing requirements, and reimbursement complexity that most turnaround firms don't understand. Lighthouse has served as receiver and assignee for assisted living facilities, memory care centers, skilled nursing operators managing 22+ locations, and adult foster care providers.
In healthcare, operational failure isn't just a financial event. It directly impacts vulnerable populations. We bring the financial expertise to resolve the crisis and the operational sensitivity to ensure patient care standards are maintained throughout the process.
Assignee for the benefit of creditors over operator of 22 skilled nursing and assisted living centers.
Challenge: A $240+ million operator of 22 skilled nursing and assisted living facilities across multiple states entered financial distress, requiring an orderly wind-down and restructuring of its obligations. The organization served approximately 1,300+ residents, employed a large workforce, and faced substantial liabilities across a broad creditor base,including secured lenders, landlords, government agencies, employees, and over 600 unsecured creditors with aggregate claims exceeding $30 million.
The Solve: Appointed as Assignee for the Benefit of Creditors, Lighthouse led a comprehensive wind-down strategy, which included the transition of facility operations to new operators while preserving value in accounts receivable, real estate, and other assets. A critical component of the engagement was the establishment and administration of a large-scale claims process–Lighthouse evaluated over 1,000 filed claims, filed objections where appropriate, and resolved disputes through settlements and negotiated outcomes. Lighthouse also managed a wide range of legal and regulatory matters, including pursuing recoveries from third parties, addressing governmental and Medicare-related claims, and defending ongoing litigation.
The Outcome: Lighthouse successfully completed the orderly liquidation and claims administration process, monetizing substantially all assets and maximizing recoveries for creditors. Total cash collections exceeded initial expectations, reaching approximately $16.2 million, with roughly $11.0 million distributed to creditors across multiple interim and final distributions. The structured claims process ensured equitable treatment of more than 600 creditors, while negotiated settlements and disciplined expense management helped preserve value for distribution.
How we manage healthcare engagements.
1. Regulatory & Operational Assessment: We evaluate licensure status, staffing ratios, compliance history, and reimbursement streams to understand both the financial distress and the regulatory landscape that constrains resolution options.
2. Patient Care Continuity: We ensure that care standards are maintained. Staffing is stabilized, vendor relationships are preserved, and regulatory agencies are informed and engaged throughout the process.
3. Stakeholder Coordination: We manage communication with state agencies, CMS, lenders, families, and staff to build the trust and transparency required to execute a restructuring or transition in a regulated environment.
4. Transition or Disposition: We manage the sale, transfer, or orderly closure of healthcare operations including license transfers, patient relocation plans, and asset disposition in full compliance with state and federal requirements.
The best outcomes start with early action.
The sooner we're at the table, the more options remain available. Reach out for a confidential conversation with our team