Utah firm Providence Group has acquired a Concord nursing home that was the subject of a federal investigation.
The property, located at 1050 San Miguel Road, is known as San Miguel Villa. Providence bought the 49,000-square-foot, 190-bed facility for $20 million, property records show. The seller is San Miguel Family Holdings, a Loomis-based entity managed by Mark and Linda Callaway.
Providence is funding the purchase with a $64.8 million mortgage. The lender is an entity tied to New York-based asset management firm Fundamental.
In November, Tranquility, the operator of the nursing home, agreed to pay $2.3 million to settle allegations of “grossly substandard” care at the facility. The settlement covered the firm’s operations between 2012 and 2017. State and federal authorities opened an investigation into the facility in 2017 over alleged high amounts of psychiatric medication dispensed to patients. The probe found that understaffing in the facility led to injuries to residents due to falls and patient-to-patient altercations.
The Concord facility was also the site of a COVID-19 outbreak in the spring of 2020. The incident, which caused the death of 14 patients, did not result in any allegations of wrongdoing from authorities.
The Concocomes about a year after Providence’s acquisition of Plum Healthcare Group. At the time of the transaction, Plum held the distinction of being the second-largest skilled nursing facility in California. The acquisition covered 58 nursing homes, 54 of which were in California. The deal increased Providence’s portfolio to 140 nursing facilities in California, Nevada, Ohio, Kentucky, South Carolina, Missouri and Texas.
Providence Group could not be reached for comment.