The collapse of a nursing home deal in Western New York after nearly three years is a prime example of how drawing out and complicating state-level change of ownership processes may “steer operators away” from the skilled nursing sector, a potential buyer is warning.
Elemental Management in February notified the state it was terminating its purchase agreement for the Villages of Orleans Health & Rehabilitation Center in Albion. Once a county-owned nursing home, 120-bed Orleans slid to a one-star rating under its current owner and has been embroiled in a legal battle with the state attorney general over fraud allegations since 2022.
Elemental had been working toward an October closing on the operations and real estate, and local media last year praised the experienced healthcare administrators “stepping in to right the ship after years of financial turmoil.” Months later, Elemental President and Managing Member Joseph Murabito cited regulatory uncertainty, undue financial burden, protracted timelines and “shifting criteria” in backing out…