By Zahida Siddiqi
The CEO and sole owner of Life Care Centers of America, Forrest Preston, is facing a conservatorship bid from his son, with the suit raising questions about the future of one of the nation’s largest nursing home providers.
Preston’s son, Aubrey B. Preston, is seeking a court intervention in the matter, alleging in an Oct. 29 complaint filing that Forrest’s wife, Kim Phuong Nguyen Preston, and her family have abused and financially exploited his father.
The older Preston is being asked by a county judge to submit to two medical examinations within 10 days amid the conservatorship petition.
The filing asserts that Forrest’s disabilities have allowed Nguyen Preston’s family to disrupt Life Care’s operations and potentially threaten its financial stability. Allegations include Nguyen Preston’s involvement in board meetings and her intimidation of employees.
The court documents called attention to maintenance delays at Life Care facilities as well as sale or closure of facilities to generate cash and reduce operational expenses from the pandemic through early 2024. Based in Cleveland, Tennessee, Life Care Centers owns or manages nearly 200 skilled nursing. post-acute and Alzheimer’s centers in 26 states, and employs approximately 40,000 individuals. It is one of the nation’s largest privately-owned nursing home chains, contributing to Preston’s estimated net worth of over $1 billion.
“Life Care is undercapitalized with over a hundred million dollars of deferred maintenance, needed facility improvements, and depreciated equipment in need of replacement,” the court filing states.
In an emailed statement to Skilled Nursing News, Life Care Centers of America President Todd Fletcher said, “Regardless of any legal proceedings, Life Care’s leadership and associates both in Cleveland and around the country remain committed to fulfilling their mission of providing excellent care to the residents in the communities they serve,” adding that “Life Care has no further comment at this time.”
Company representatives also confirmed that Forest Preston, who founded Life Care in 1976, remains the company’s current owner, chairman and CEO.
In describing the older Preston as “mentally and physically disabled,” the court filing states that Life Care’s executive team has managed as best they can, but that their authority is limited.
“Forrest’s disabilities have progressed to the point that his behavior is endangering Life Care’s very existence,” the filing states.
The court filing alleges that he is “unavailable to Life Care executives for weeks and sometimes more than a month when key decisions are needed or his signature on crucial documents is required.”
Chattanooga attorney Gary L. Patrick, representing the son, stated in the complaint that “Aubrey no longer had any choice but to seek this court’s intervention, not just for Life Care’s patients and employees, but most importantly for the safety and well-being of his father.”
The complaint alleges that Preston’s current wife, Nguyen Preston, and her siblings engaged in conspiracy and civilly aided one another in misappropriating Forrest’s assets, citing violations of the Tennessee Adult Protection Act. The filing also claims that since marrying in 2018, Nguyen Preston has progressively isolated Forrest from his family and friends.
The complaint suggests that instead of protecting him, Nguyen Preston
and her family unlawfully enriched themselves, acquiring significant
real estate and cash.
Full Article & Source:
Life Care Centers CEO Faces Conservatorship Bid, Raising Concerns Over Nursing Home Giant’s Future
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