Attorney General Bonta Conditionally Approves Sale of Three Eskaton-Owned Skilled Nursing Facilities

OAKLAND – California Attorney General Rob Bonta today announced his conditional approval of the sale of three Sacramento County skilled nursing facilities (SNFs) owned by Eskaton Properties, Inc (Eskaton). The conditional approval will allow the facilities to come under the ownership of International Equity Partners, Inc. (IEP), a Los Angeles-based company that owns approximately 100 skilled nursing and convalescent facilities throughout California. Under California law, any transaction involving the sale or transfer of control of a nonprofit healthcare facility must secure the approval of the Attorney General. The conditions of Attorney General Bonta's approval of the transaction will ensure access to high-quality housing and care for the residents of the three SNFs.
 
“When reviewing healthcare transactions, the safety of Californians remains our top priority,” said Attorney General Bonta. “After a thorough review process, I am conditionally approving the sale of these Eskaton facilities. The conditions imposed on the sale will protect the well-being of the residents and ensure that their access to care remains uninterrupted.”
 
The three SNFs being sold in this transaction are:

• Eskaton Care Center Greenhaven, comprising 148 licensed beds
• Eskaton Care Center Fair Oaks, comprising 149 licensed beds
• Eskaton Care Center Manzanita, comprising 99 licensed beds

The buyer, IEP, will pay $35,640,000 for the three facilities and has engaged Cypress Healthcare Group, LLC (Cypress) to operate them. Cypress already operates nine other SNFs, located in the Sacramento area. An expert analysis found that Cypress-run SNFs are among the top-performing facilities in the state and the entire United States. Since Cypress is experienced in operating SNFs, has a proven record of success, and is familiar with the Sacramento County area, Attorney General Bonta expects IEP’s purchase of the Eskaton SNFs to be beneficial for the facilities’ residents.
 
As part of his conditional approval, Attorney General Bonta has imposed specific conditions for the proposed sale, which will require IEP to, among other things:

• Maintain the same type and level of services being provided to residents.
• Honor and abide by all resident admission agreements, leases, and other occupancy agreements.
• Maintain and continue to employ staff who are in good standing.
• Ensure continued participation in Medi-Cal and Medicare for eligible patients.
• Comply with nondiscrimination rules in the provision of services.

The California Department of Justice’s Healthcare Rights and Access Section (HRA) works proactively to increase and protect the affordability, accessibility, and quality of healthcare in California. HRA’s attorneys monitor and contribute to various areas of the Attorney General’s healthcare work, including nonprofit healthcare transactions; consumer rights; anticompetitive consolidation in the healthcare market; anticompetitive drug pricing; privacy issues; civil rights, such as health equity, reproductive rights and LGBTQ healthcare-related rights; and public health work on tobacco, e-cigarettes, and other products.
 
A copy of the conditional approval letter is available here.