Privately-held Preferred Care, Inc. (Preferred Care) filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Northern District of Texas, lead case number 17-44642. The Company, which is headquartered in Plano, Texas, is owned by Thomas Scott and represented by Stephen A. McCartin of Gardere Wynne Sewel. Preferred Care, which is one of the largest U.S. nursing home chains, houses over 9,300 residents across twelve states, filed for Chapter 11 bankruptcy as a result of multi-million personal injury lawsuits largely in Kentucky and New Mexico, according to Court-filed documents.
Presently, there are 163 lawsuits pending against Preferred Care facilities. The operators of the 33 nursing homes involved said in a statement released by Preferred Care that taking this action will allow them to stay in business, pay employees and vendors and care for their residents while effecting a corporate restructure.
According to documents filed with the Court, the cost and expense of defending the pending litigation has drained the Company of resources better used for quality patient care. A spokesperson for the operators of the nursing homes said, “The health, safety, and comfort of the residents will be the primary concern going forward.”
Preferred Care indicates liabilities from $1 million to $10 million, and lists assets from $1 million to $10 million.
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