SKYLINE HEALTH TO SELL NURSING HOMES

A financially troubled Bergen County company is selling its three New Jersey nursing homes and exiting the business after its facilities failed financially in four other states.

Health officials in South Dakota and Pennsylvania went to court to put 28 nursing homes owned or operated by Skyline Health Care of Wood-Ridge or its subsidiaries into receivership last week. Receivership refers to temporary management to assure that patients receive adequate care and nutrition, and employees are paid.

That followed actions in late March and April by Nebraska and Kansas officials to remove Skyline from the management of 36 homes and 10 assisted-living facilities in those states.

The company, with headquarters above a pizzeria in Wood-Ridge, quickly expanded from its original three nursing homes in New Jersey to acquire more than 100 nursing homes in a little more than two years.

It is owned by Joseph Schwartz of Brooklyn and his wife, Rosie. They had founded an insurance company, whose sale in 2015 apparently launched the nursing home expansion.

But now the company is making "a transition from the nursing home and managed-care industry," a spokesman said.

"As with any transition, there have been hurdles," spokesman Juda Engelmayer said. He blamed "an individual property owner" for the problems in the four states where regulatory action has been taken.

Skyline operated many of its nursing homes under lease agreements with Golden Living, a large chain that had operated them but divested the operations to focus on real estate.

In a vaguely worded statement, Engelmayer said the "delay ... was not occasioned by any conduct on the part of Skyline, [and] created an unfortunately unsustainable scenario."

In New Jersey, state health officials have "no indication that there are any difficulties with the provision of care" in the Skyline facilities," said Donna Leusner, a spokeswoman.

"The three facilities are funded, have supplies, are making payroll and are paying vendors. They have a buyer for all three properties, and the department will be processing the application promptly."

Schwartz has applied for state approval to sell his three New Jersey nursing homes to Chaim Scheinbaum of Lakewood, Leusner said. The three homes are:

Hudson View Care & Rehab Center in North Bergen, with 273 beds

Brookhaven Health Care Center in East Orange, with 122 beds

The Voorhees Care & Rehabilitation Center, with 240 beds.

Scheinbaum owns two nursing homes in Sussex County: Andover Subacute and Rehab One and Two, the latter being one of the largest facilities in the state, with 543 beds. Also listed as an officer for the homes is Louis Schwartz, Joseph Schwartz's son.

The situation in New Jersey contrasts with conditions in other states.

A report contained in papers filed in a South Dakota court by state officials to obtain the receivership said the nursing homes there "are in harm's way and all residents' safety is at risk," according to press accounts.

"The facilities in South Dakota have enough food for residents until Wednesday, May 2, they have enough medical supplies until Wednesday, May 2, enough housekeeping and laundry supplies until Tuesday, May 1," a nursing home administrator wrote.

In Pennsylvania, the Department of Health "confirmed the company could no longer fiscally operate the facilities," a statement from the department said.

"We have installed temporary management at all nine facilities to ensure residents will continue to receive safe care."

Skyline also operates or owns nursing homes in Arkansas, Tennessee, Massachusetts, and Florida.

Email: washburn@northjersey.com