LaVie Care Centers files for bankruptcy

Atlanta-based LaVie Care Centers — one of the country’s largest operators of skilled nursing facilities — has filed for Chapter 11 bankruptcy, Bloomberg reported June 3.

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LaVie operates 43 nursing homes and assisted living facilities under multiple names, including Consulate Health Care, operates in five states and has about 3,600 employees.

Since the pandemic, LaVie has divested more than 90 facilities. The company filed bankruptcy due to high labor costs, lower occupancy and uneven reimbursement rates. When selling off facilities, it was left with lease liabilities and litigation claims. It was unable to negotiate repayment plans with all creditors and fell behind on settlement agreements, according to the report. 

LaVie listed assets of up to $1 billion, and liabilities of as much as $10 billion in its court documents. It is working on a plan to repay creditors and to reorganize or sell itself.

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