AG Bonta Conditionally Approves Nonprofit Retirement Communities Transaction

  • California AG Rob Bonta has conditionally approved the sale of California-Nevada Methodist Homes (Methodist)—a nonprofit that operates two continuing care retirement communities—to real estate firm Pacifica Companies LLC (Pacifica). The $34 million sale is part of Methodist’s Chapter 11 bankruptcy proceedings and has already been approved by the Bankruptcy Court.
  • Under California law, sale or transfer of a nonprofit healthcare facility requires approval of the state AG. AG Bonta’s made his approval contingent on a number of conditions relating to both facilities, citing Pacifica’s higher than average rate of citations for similar facilities it already owns, which conditions include requiring Pacifica to consult a Community Advisory Board; mandating reporting on safety; and requiring continued participation in Medicare.
  • Both facilities will also be required to maintain their current staffing and care delivery levels, and authorize the appointment of a monitor by the AG to evaluate and audit compliance with standards of care, along with other forms of compliance reporting.