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Massachusetts health officials have quietly granted approval for a newly formed healthcare company to acquire a chain of local nursing homes, including one in Fairhaven.
On Sept. 11, the Department of Public Health determined that AuthentiCare was a suitable new operator for Royal Health Group’s 10 nursing homes in the state. Katheleen Conti, a spokesperson for the department, confirmed the decision in an email to The Light on Thursday.
The state made no public announcement about the approval, and elder advocates said they were left out of the loop after they urged health officials to think carefully about the sale at a hearing last month. They pointed out that AuthentiCare was a new company with no track record. Members of the public who testified said they found it hard to research the company’s limited history.
“It appears they haven’t really taken into consideration the information that was provided at the hearing,” said Dick Moore, a former state senator and elder advocate with the Massachusetts Dignity Alliance. “It looks like they simply dismissed it and moved ahead.”
In Massachusetts, health officials have the authority to consider the “suitability” of new nursing home operators. The department can approve the new operator’s application — potentially with certain conditions — or deny it.
AuthentiCare did not have to agree to any conditions, according to a statement provided by the company.
Elder advocates had argued that certain stipulations would be critical to making sure that residents are cared for properly after the transition. They had asked the department to make AuthentiCare commit to meet state staffing standards, maintain workers’ pay, and cap certain financial maneuvers that can redirect money away from resident care.
Moore called the department’s decision to make the approval without conditions “irresponsible,” saying there’s no way for health officials to ensure that the company fulfills its promises to improve the facilities.
Conti did not immediately answer The Light’s questions about whether health officials required AuthentiCare to agree to any conditions, or how the department took into account feedback received during a public hearing on the sale last month.
The Royal chain includes a dozen nursing homes in eastern Massachusetts and Rhode Island. These facilities care for 963 residents each day, public data shows. Some of them are rated as underperformers on Medicare’s nursing home rating system, but most are rated as average or above-average.
Royal of Fairhaven Nursing Center, a 107-bed facility at 184 Main St., is among the nursing homes being taken over by AuthentiCare.
Royal Health Group did not respond to The Light’s request for comment sent late Thursday.
AuthentiCare CEO Shaya Rotberg said at last month’s hearing that the company planned to maintain the chain’s existing bed capacity and staff, while making “significant investments” in its buildings and technology. The company also filed to acquire Royal’s two nursing homes in Rhode Island.
In a written statement sent to The Light through a spokesperson on Friday, Rotberg said the company had already started making upgrades to “information technology and infrastructure.”
“These facilities serve an essential need in Southeastern Mass. and Cape Cod and we look forward to strengthening them through new investment,” the statement said. “We want to create the best resident and employee experience possible.”
AuthentiCare’s leadership has “extensive long-term care experience,” Rotberg said, adding that he was a nursing home administrator for 11 years before overseeing nursing homes as a regional vice president.
The company plans to keep Royal’s management in place, including a vice president for operations who has been with the company for 25 years, Rotberg said.
Another potential nursing home sale, of 11 facilities owned by Next Step Healthcare, including one in Fall River, is still under review, Conti said on Thursday. The proposed buyer is Sweetwater Care, based in California.
Elder advocates call for more transparency in nursing home sale reviews
Nursing home buyers are required to post legal notices in nearby newspapers, but elder advocates say the Department of Public Health should do more to make sure the public is informed about facilities changing hands.
Paul Lanzikos, another advocate with the Dignity Alliance, said records he obtained from the department through a public records request revealed that it had overseen at least 20 nursing home deals since 2024 that advocates didn’t know about. This year alone, he said, over 40 nursing homes from multiple different chains could change hands.
At the very least, advocates say, health officials should post information about pending and finalized nursing home transfers on the state’s website, so members of the public can see their decisions in real time.
“They should know who’s involved with the facility, who’s in control, who’s making the critical decisions,” Lanzikos said. “It all becomes very unsettling if these transactions are not done in an open and transparent fashion.”
The Light submitted a public records request on Aug. 28, asking the Department of Public Health for a copy of AuthentiCare’s application. The department has not provided any records and recently gave an estimate that it would make the records available on Oct. 8 — nearly four weeks after officials approved the sale. State law normally requires a response within about two weeks.
The Dignity Alliance advocates say the department should be more transparent so residents and their families can assess whether a new owner has the right background to provide high-quality care. For workers, they say, it’s important to know whether a potential new employer has the ability to offer fair pay and good working conditions.
More open reviews of nursing home sales are important even for Massachusetts residents who never set foot in a nursing home, said Moore, the former legislator. The state spends billions of dollars on nursing home care each year, mainly through MassHealth insurance coverage.
“The taxpayers are paying for this process,” he said. “There’s a crying need for more transparency.”
Nina Jorgensen, whose mother is a resident at Royal Health Braintree, said she assumed the sale would go through after the hearing. But she hadn’t heard any official confirmation until a Light reporter called her on Thursday.
She said she hasn’t noticed any major changes in the nursing home as the transition starts to unfold. For now, she plans to wait and see what happens.
“I’m being vigilant; let’s just put it that way,” she said.
Email Grace Ferguson at gferguson@newbedfordlight.org
