The Plano-based operator of one of the nation’s largest nursing home chains filed for bankruptcy Monday, citing an “overwhelming amount” of lawsuits and huge legal payouts.
Preferred Care Partners, headquartered on 5420 W. Plano Parkway, noted a $28 million verdict in October for a personal injury claim. But the company also has more than 160 other pending lawsuits, mainly in Kentucky and New Mexico, the court documents said.
Preferred Care operates over 110 skilled-nursing, assisted-living and independent-living facilities in 12 states, including Texas, Oklahoma and Louisiana. Its facilities include about 11,500 beds and serve around 9,300 residents, according to the filing this week in the Northern District Court of Texas.
Mounting costs and negative exposure associated with defending multiple lawsuits has left Preferred Care with limited resources, the court documents said. Former residents of its facilities have accused the chain of negligence, wrongful conduct, of not having adequate staffing and causing a elderly woman’s “accelerated deterioration,” among other claims.
The company estimates its total liabilities are between $10 million and $50 million. It had a total operating revenue of about $602 million in 2016, according to Provider magazine, which includes it at 12th on a list of the top 50 U.S. nursing facility companies.
A bankruptcy filing will provide “a breathing spell” while Preferred Care attempts to negotiate settlements and restructure its business, the bankruptcy documents said.
It will also allow the company to continue to operate its facilities while it seeks out future transactions to “sell or otherwise dispose of” facilities.