Nonprofits settlement could bring $40 million

Nonprofits settlement could bring $40 million

April 27th, 2013 by Staff Reports and Associated Press in Business Around the Region

Tennessee Attorney General Bob Cooper

A longstanding legal dispute between two publicly traded health care companies and the receiver for two Tennessee nonprofit corporations could ultimately result in $40 million going to charities in the Volunteer State.

State Attorney General Bob Cooper's office announced Friday that a settlement had been reached between National Health Investors, National HealthCare Corp. and the court-appointed receiver for two Tennessee nonprofits.

Cooper had previously asked a Nashville judge to place NHI and NHC in receivership. The receiver turned around and sued the companies over concerns about the financial terms in deals involving nursing home facilities sold to nonprofits.

Cooper's office said the settlement terms, along with the liquidation of assets, will result in a $40 million payout.

The settlement still has to be approved by a court.

National Health Investors helped estalbish two nonprofit corporations, SeniorTrust and ElderTrust, and sold a group of nursing homes to the nonprofit identities. In 2007, NHC acquired the lease of a long-term care facility in Chattnaooga known as Standifer Place from Senior Trust. The receiver for SeniorTrust and ElderTrust clamed that the financial terms of the deal were unfair to the nonprofits, although NHI and NHC disputed those claims.

"We believe this settlement is in the best interest of the public and upholds the appropriate use of Tennessee charities," Cooper said.