Boston, MA — Eleven Massachusetts nursing homes operated by Next Step Healthcare have been placed into court-ordered receivership after their landlord accused the company of owing nearly $15 million in unpaid rent and fees.
The landlord, a group of companies affiliated with Cuarzo Healthcare, claims most of the unpaid rent dates back to 2022 and 2023. Separate court filings from a lender say Next Step also owes more than $3 million in outstanding loans.
In filings, Cuarzo described Next Step’s finances as being in “dire financial condition” and warned that instability could threaten resident care. A Middlesex County judge granted the landlord’s request to appoint an independent receiver, who assumed control of the facilities last week.
Resident advocates said receivership is intended to keep the nursing homes operating while financial disputes are resolved, but stressed the situation should draw regulatory scrutiny.
“It warrants close monitoring,” said Paul Lanzikos, co-founder of Dignity Alliance Massachusetts.
Next Step operates 14 nursing homes statewide. The facilities placed into receivership are located in Malden, Melrose, Fitchburg, Attleboro, Worcester, Norwood, Middleboro, Plymouth, Taunton, and West Newton. More than 1,000 residents live in Next Step-run homes.
Disputed financial picture
Cuarzo pointed to a 2024 audit by Plante Moran that raised “substantial doubt” about Next Step’s ability to continue operating, finding its liabilities outweighed its assets by roughly two to one.
The landlord also cited low inspection ratings and past violations, including incidents deemed to place residents in “immediate jeopardy.”
Next Step has disputed those claims, telling the court its finances are “stable and improving.” The company said rent issues stemmed from pandemic-era disruptions and that it has since resumed full payments. In a written statement, a spokesperson said resident care has not been affected.
Temporary management steps in
The receiver has hired iCare Health Network to oversee day-to-day operations. iCare said the transition has gone smoothly and that it is focused on stabilizing care while the case proceeds. A status conference is scheduled for April.
