The deal with Plum Healthcare Group includes the operations of 58 total facilities and the real property on 10 of the assets. Fifty-four of the facilities are located in California, and four facilities are in Nevada. Capital Funding Group provided financing for the deal.
Providence Group is a provider of nursing facilities and assisted living facilities designed to provide highest level of care and customer service in a modern environment. The company’s nursing facilities provides physical therapy, occupational therapy, speech therapy, outpatient therapy and other healthcare services, enabling patients to recover fast in a clean environment.
Providence Group’s PACS provides administrative and consulting services that help skilled nursing and long-term care facility teams exert maximum focus and attention to the care, well-being, and improved quality of life for every short-term patient and long-term resident.
California Attorney General Rob Bonta, in September 2021, announced a consent decree that addressed the potential anticompetitive effects of the merger of Providence Group with Plum Healthcare.
Providence and Plum separately own several dozen skilled nursing facilities (SNF) throughout California, including two in rural Lake County. Following a joint investigation of the merger by the Federal Trade Commission (FTC) and the California Department of Justice’s Healthcare Rights and Access Section (HRA), the agencies determined that a consent decree with the companies would help prevent a SNF monopoly in the area and address concerns about the merger’s anticompetitive impact, especially on vulnerable senior, rural and indigent consumers.
The Attorney General announced that to fulfill the terms of the agreement, Providence will sell one of its SNFs in Lakeport, a city in Lake County, as well as appoint a monitor to oversee the sale and safeguard patient care in the facility. To fulfill the terms of the agreement, Providence will divest Rocky Point Care Center (Rocky Point), one of the two SNFs the company owns in the area.
Takeaway: With the acquisition, Providence Group’s subsidiaries now operate more than 140 skilled nursing facilities in seven states, including California, Kentucky, Missouri, Nevada, Ohio, South Carolina and Texas