York Capital Management’s private equity arm, York Private Equity, entered into a strategic growth partnership with Comprehensive Rehab Consultants (CRC), a physiatry, psychiatry, and care transition group.
“We chose York as our partner given their long-term, collaborative approach and proven experience supporting businesses in the post-acute healthcare industry. This partnership will allow CRC to broaden our service offerings and provide better care to our core patient population,” said Dr. Omar Osman, Co-Founder and CEO of CRC, in a press release.
The investment from York Private Equity is expected to provide the necessary resources for CRC to expand its service offerings and reach more patients in skilled nursing facilities across the United States, York Private Equity stated.
“Through this collaboration with York, we are confident we will be able to reach more patients, expand the services we provide them, and improve the quality of care they receive,” Rehan Azhar, Co-Founder and COO of CRC said.
The partnership with CRC marks the eighth platform investment by York Special Opportunities Fund III, L.P. William Blair acted as the sell-side investment banking advisor to CRC, and Pennant Park provided debt financing for the transaction.
Seth Pearson, managing director at York Private Equity, commended CRC for its outstanding performance since its inception three years ago.
“CRC has done an extraordinary job of establishing itself as one of the premier clinical providers serving the post-acute sector,” Pearson stated. “Our investment aligns with York’s strategy of backing founders and management teams to create opportunities for superior clinical outcomes and accelerate existing organic growth plans.”
Eads Investment Brokers Sale of Southern Illinois Skilled Nursing and Independent Living Campus for Regional Non-Profit
Eads Investment Brokerage represented a regional non-profit organization in the sale of a skilled nursing and independent living campus located in Southern Illinois.
The primarily skilled nursing community, offering 167 beds/units, was operating at a census below 70%. However, despite the challenges posed by the Covid-19 pandemic, revenues exceeded $10.5 million and displayed a positive trend. The community was operating near breakeven before the pandemic, and efforts to mitigate losses have only just begun.
The sale price was $31,250 per licensed bed, and the campus also includes an assisted living building, which will be retained by the seller due to tax credit obligations.
Executed by Eads Investment Brokerage, the sale is expected to play a crucial role in stabilizing the non-profit’s portfolio. The proceeds from the transaction will offer much-needed liquidity, allowing the organization to further its mission in serving communities.
The buyer, a regional operator with efficiencies in the immediate market, is uniquely positioned to streamline costs and stabilize the workforce, Eads Investment Brokerage told SNN. This strategic alignment bodes well for the continued success of the Southern Illinois campus under new ownership.
The transaction marks the third non-profit campus sold by Eads Investment Brokerage in the past year.
Companies featured in this article:
Centers for Medicare & Medicaid Services, Comprehensive Rehab Consultants, York Capital Management