Hospice, nursing home operator HCR ManorCare file pre-packaged Chapter 11

Quality Care Properties, Inc. and HCR ManorCare, Inc. announced that they have reached an agreement to move the ownership and leadership of HCR ManorCare, including its skilled nursing, assisted living, hospice and home care businesses to QCP.

HCR ManorCare operates three nursing homes and hospice centers in northern Delaware. The company had $7.1 billion in debt.

QCP, the landlord for HCR properties and HCR ManorCare have agreed to a prepackaged plan of reorganization in U.S. Bankruptcy Court in Delaware.

The parent company's Chapter 11 filing will have no impact on patient care or the subsidiaries' operations, a release stated.

The transaction is subject to bankruptcy court approval of the prepackaged plan of reorganization and customary closing conditions, including regulatory approval.

Steven M. Cavanaugh, HCR ManorCare's CEO stated, "We have worked with QCP to reach an agreement that provides stability for our employees, residents, and patients. I am proud of the hard work and dedication that HCR ManorCare employees have continued to demonstrate in delivering outstanding care during difficult times. We will work tirelessly through the transition to ensure that the company continues to deliver the same level of outstanding care."