Lebanon, PA — The landlord of Cedar Haven Healthcare Center has asked a Lebanon County judge to appoint a receiver to take over the 150-bed nursing home, alleging the operator owes roughly $2.4 million in unpaid rent and has fallen behind on key obligations tied to Medicaid funding, according to court filings.
The emergency petition, filed Nov. 21 by 532 N. 5th Street Realty LP, says the operator, SCR Cedar Haven Operations LLC, a subsidiary of Saber Healthcare Group, has been in default since August 2024. The landlord argues a court-appointed receiver is needed to stabilize the facility and, if that fails, oversee an “orderly wind down” that could lead to sale or closure. A hearing is set for Dec. 5.
While the filing says no immediate evictions are planned, it warns that staffing shortages and delayed vendor payments pose risks to resident care. State officials have been notified and are monitoring the situation, including compliance with federal staffing mandates.
Background: Years of financial strain
Cedar Haven has a long and complicated history in Lebanon County. Once county-owned, the facility was privatized in 2014 in a $12.5 million sale meant to relieve public budget pressure. Five years later, the home entered Chapter 11 bankruptcy, listing more than $20 million in debts to hundreds of creditors, and emerged in 2022 after a court-approved reorganization.
The landlord’s petition says recent defaults echo those earlier troubles. Beyond rent arrears, it alleges the operator missed state-mandated remittances tied to Medicaid reimbursements, including about $800,000 intended for resident services. The filing cites reports of delayed payments to food and medical suppliers, contributing to instability on the floor.
As of November, Cedar Haven was about 92% occupied with roughly 138 residents, the vast majority covered by Medicaid, according to public data referenced in the filing. Recent inspection records cited in the petition also point to staffing levels averaging around 2.9 hours per resident day—below the new federal floor of 3.48 hours that is being phased in nationwide.
Operator and landlord stake out positions
The landlord, affiliated with a healthcare real estate firm, says receivership is a last resort to protect residents and the property. “We have no desire to disrupt care, but the operator’s defaults have left us no choice,” the petition states.
Saber Healthcare Group, which operates the facility through SCR Cedar Haven Operations, pushed back on the prospect of closure. In a statement provided to media, CEO Bill Simione said, “Cedar Haven remains committed to its residents. We are actively negotiating with stakeholders and exploring financing options to resolve this matter swiftly. No closures are planned, and care standards are upheld.”
Lebanon County officials stressed the county no longer owns Cedar Haven but said they are coordinating with state agencies in case relocations become necessary. The county’s Area Agency on Aging has fielded an uptick in family inquiries since the filing became public, according to local officials.
What it means for residents and staff
Receiverships are uncommon but have grown more frequent as nursing homes grapple with rising labor costs and reimbursement pressures. If a receiver is appointed, the court could empower a third party to run day-to-day operations, manage cash flow, and prepare the facility for sale or transfer. If the home cannot be stabilized, state guidelines call for orderly transfers—typically over 30 to 60 days—to minimize disruption to residents.
Family members say uncertainty is the immediate concern. “If they shut down, where do we go?” one daughter of a Cedar Haven resident said through the state’s long-term care ombudsman program. Employee groups are also watching for any signs of payroll delays or staffing cuts as the legal process unfolds.
What’s next
The court will consider the landlord’s petition on Dec. 5. In the meantime, state regulators are monitoring staffing and quality measures, and the operator says it is pursuing bridge financing. Industry sources note that cases like Cedar Haven’s have become a bellwether for financially stressed facilities, particularly in rural markets where Medicaid is the dominant payer.
For now, residents remain in place, and both sides say they want to avoid disruption. Whether the court orders a takeover—or the parties reach a financing or lease solution—will likely determine Cedar Haven’s short-term future.
