Howard Ehrenberg Discusses Rise of Nursing Home Bankruptcies with Daily Journal

Daily Journal interviewed Managing Member Howard Ehrenberg for the article, “Distress in health care industry highlights nursing home woes,” to gain insight into the rising number of nursing home bankruptcies. “The number of bankruptcies is related both to the sheer number of facilities, but also to the difficulty in operating these facilities profitably,” Mr. Ehrenberg said.

While baby boomers continue to retire, high operation costs and the overwhelming amount of lawsuits put additional strain on nursing facilities. Recently, Mr. Ehrenberg was appointed Chapter 11 Trustee for two nursing homes and blamed financial stress for the bankruptcy filings.

“It became quite obvious that they did not have the resources internally to reorganize as other companies that file Chapter 11 can, so the only option was to sell to a larger company that could operate with more economy of scale,” he adds.


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