Operational Turnaround of a Distressed Assisted Living Portfolio.
The Challenge: Severe Financial Distress and Operational Instability Under Receivership
In December 2023, Everest Management Solutions assumed management of three assisted living facilities (ALFs) in Ohio that were operating under receivership. The portfolio faced severe financial distress, staffing instability, and declining occupancy, all of which threatened long-term viability and investor confidence.
At the time of Everest’s engagement:
- The portfolio housed 151 residents across three centers.
- Combined EBITDAR totaled just $25,000 per month, indicating deep operational inefficiency.
- Heavy agency staffing reliance disrupted care consistency and increased costs.
- Move-ins averaged only three per month, reflecting limited market visibility and weak referral pipelines.
- The landlord faced unpaid rent, and property value had declined sharply, with a prior $15 million offer against an outstanding $24 million loan.
Without intervention, the portfolio risked further financial deterioration and potential closure.
Our Approach: Comprehensive Turnaround and Growth Strategy for Assisted Living
Everest launched a comprehensive turnaround and growth strategy designed to stabilize operations, rebuild census, and restore financial health across all three ALFs.
Key actions included:
- Leadership and Operational Overhaul: Appointed experienced interim Executive Directors and regional leaders to reestablish accountability, performance standards, and communication.
- Census Growth Initiatives: Executed external marketing plans, digital marketing, and CRM management to increase lead volume and improve sales conversion.
- Staffing Optimization: Fully eliminated agency staffing by rebuilding full-time care teams, implementing wage adjustments, and improving retention through engagement initiatives.
- Financial Restructuring: Streamlined purchasing, controlled discretionary spending, and renegotiated rent obligations to align with stabilized revenues.
- Performance Tracking: Introduced weekly sales and financial reporting tools to enhance visibility, accountability, and data-driven decision-making.
This coordinated, multi-pronged approach created operational stability while restoring both the portfolio’s reputation and financial viability.
Results: Complete Financial Recovery and Successful Asset Sale
Within one year, Everest’s strategic interventions delivered a complete transformation:
- Occupancy increased from 151 to 210 residents, a 39.1% portfolio-wide growth.
- EBITDAR improved from $25,000 to $240,000 per month, representing an annualized turnaround of $2.6 million.
- Agency staffing was fully eliminated and replaced with consistent, high-performing teams.
- Average move-ins rose from three to eight per month, driven by revitalized sales and marketing strategies.
- The portfolio sold for $25.2 million, enabling the lender to be paid in full.
These outcomes demonstrate Everest’s proven ability to lead distressed senior living communities from receivership to full operational and financial recovery.
Key Takeaway
Successful turnarounds in senior living require strategic leadership, disciplined execution, and total alignment across sales, operations, and finance. Everest’s comprehensive framework consistently converts under performing assets into profitable, stable operations that deliver long-term value for owners and investors.
Is your senior living portfolio under performing or facing financial distress? Partner with Everest Management Solutions to restore stability, rebuild census, and achieve measurable growth, even in the most challenging operational environments.
Client names and identifying details have been omitted to maintain confidentiality.