Big Nevada nursing home operator in bankruptcy

Friday, Feb. 4, 2000 | 10:34 a.m.

The largest nursing home operator in Nevada, with 1,382 beds in the Las Vegas area, has filed for bankruptcy in Delaware.

Integrated Health Services Inc., Sparks, Md., filed voluntary petitions with the U.S. Bankruptcy Court seeking to reorganize under Chapter 11 bankruptcy protection codes.

Under Chapter 11 bankruptcies, businesses seek court protection from creditors while they reorganize finances and usually continue to operate.

Marc Levin, executive vice president of IHS, said today the company will keep its 1,600 facilities in 48 states open. No layoffs are anticipated.

In Southern Nevada, IHS has nursing homes in Las Vegas, North Las Vegas, Henderson and Boulder City. The largest are the company's 240-bed Cheyenne Residential and Nursing Center, which is next door to its 98-bed Cheyenne Care Center at 2856 E. Cheyenne Ave. The company's Henderson facility houses 266 beds.

The company also operates six nursing homes with 707 beds in Northern Nevada.

Tammy Supchak, administrator of the Cheyenne Care Center and president of the Nevada Health Care Association, said she is confident IHS will emerge from the bankruptcy proceeding a stronger company. She said she is hiring additional personnel for her facility.

There are 43 nursing home facilities statewide and IHS is the largest operator in Nevada.

The company blames its troubles on federal payment levels.

"The dramatic impact of the implementation of the 1997 Balanced Budget Act on our revenues and cash flow severely impacted the company's ability to service our current capital structure," Chief Executive Robert Elkins said in a statement.

The company received a commitment on Wednesday for up to $300 million in debtor-in-possession financing from Citibank that will allow it to continue operations.

Its net revenues for the first nine months of 1999 were $1.9 billion, a 15.5 percent decline from the previous year.

IHS is the seventh national nursing home provider to file for bankruptcy protection in six months, the company said in a release announcing its filing. Vencor Inc. and Sun Healthcare Group Inc., which both have Las Vegas nursing home facilities, filed for bankruptcy in September and October, respectively.