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Absolut Care files for bankruptcy, to close Orchard Park nursing home

Absolut Care

Absolut Care will close its Orchard Park nursing home amid filing for bankruptcy. 

Absolut Facilities Management LLC, which operates seven senior care facilities throughout the state, announced the Chapter 11 filing and Orchard Park closing on Wednesday, saying it’s doing so to financially reorganize and better position for the future. 

“We are very confident that we will emerge a much stronger company after these legal proceedings are concluded,” said Absolut CEO Israel Sherman in a statement. “It is our expectation that during this process that Patient Care, our employees, and our commitment to excellence will remain our top priority.”


The company’s press release stated it has already received regulatory approval to close the Orchard Park facility, but did not say when that will happen. An Absolut spokesperson did not immediately return an inquiry about the closing date.


The company stated its other facilities in East Aurora, Gasport, Allegany, Westfield and Painted Post will remain open.


Absolut Center for Nursing and Rehabilitation at Orchard Park is a 202-bed facility that employs approximately 230 people and offers short-term rehabilitation, long-term skilled nursing and dementia care. 


It has a one-star rating, meaning much below average, from the U.S. Centers for Medicare or Medicaid.


The facility had revenues of $18.58 million and $18.1 million in 2017 and 2018, respectively, the second-largest revenues of any Absolut facilities, according to the bankruptcy filing. The seven facilities altogether gross approximately $83 million in revenue a year.


Absolut, a for-profit company based in Nassau County, made the Chapter 11 filing Tuesday in U.S. Bankruptcy Court for the Eastern District of New York. 


In the filing, the company discloses it owes millions, including $10.44 million to trade creditors, $4.05 million in state and federal taxes, and $2.97 million to landlords; the company disputes the amount of the unpaid rent.


As for what’s caused the bankruptcy, Absolut cities rent totaling $11 million a year; low Medicare and Medicare reimbursement rates; a competitive nursing home industry; and lawsuits alleging poor care.

Tom Dinki joined WBFO in August 2019 to cover issues affecting older adults.