Bloomington-based Heritage Operations Group is selling off about half of its fleet of nursing homes, and cutting administrative staff.
Heritage President and CEO Ben Hart said in a statement the company is selling 22 of its 44 skilled care facilities and one assisted living outlet.
“Heritage Operations Group has been strategically evaluating how to best provide health care services into the future,” said Hart.
State mass layoff filings show Heritage also is letting 69 people go from company headquarters starting in April. The sale will close June 1.
“As a result of the divestiture, our corporate office in downtown Bloomington will be restructuring and reducing its size. Heritage Operations Group will continue to manage skilled nursing facilities and senior living facilities at a reduced size and scope,” said Hart.
Heritage and many skilled care companies have been under pressure in recent years with the rise of nursing temp agencies health care labor shortages caused by the pandemic.
Recent legislation pushed by Heritage was supposed to help financial pressure on the entire nursing home industry by increasing Medicaid reimbursement rates and through transparency requirements designed to level the competitive playing field with temp agencies who hire away nurses with the promise of higher wages. Heritage decided to go ahead with a strategic downsizing and restructuring and had been looking for a buyer for several months.
Hart said Heritage will continue operating nursing homes and senior living facilities and company headquarters will stay in Bloomington.
