Next Step Properties Placed in Receivership, iCare Tasked With Interim Operations

Why It Matters

The move exposes financial fragility in senior‑care operators and triggers heightened regulatory scrutiny, directly affecting over 1,000 residents and market confidence.

Key Takeaways

• 11 nursing homes under court receivership.
• $15M unpaid rent, $3M lender debt.
• iCare Health Network managing interim operations.
• Over 1,000 residents affected statewide.
• Next Step disputes financial distress claims.

Pulse Analysis

The Massachusetts‑based operator Next Step Healthcare has seen eleven of its fourteen nursing homes placed in court‑appointed receivership after landlords affiliated with Cuarzo Healthcare REIT reported nearly $15 million in unpaid rent and $3 million in lender arrears. Audits revealed chronic late payments dating back to 2022, coupled with inspection failures that placed residents in immediate jeopardy. While the company argues that pandemic‑related cash flow issues have been resolved, the court’s intervention underscores the severity of the financial breach and the urgency to protect vulnerable seniors.

Connecticut‑based iCare Health Network was tapped as the interim manager, deploying a 22‑person team to stabilize daily operations and reassure families. iCare’s VP of Business Development, David Skoczulek, reported a smooth transition, emphasizing continuity of care and preparation for a permanent operator. The temporary stewardship aims to address staffing shortages, improve inspection scores, and secure payment streams for the facilities. By maintaining resident services during the legal process, iCare mitigates the risk of abrupt closures that could displace more than 1,000 seniors.

The receivership highlights a growing vulnerability in the senior‑care sector, where thin margins and reliance on real‑estate leases can trigger cascading failures. Regulators are likely to intensify oversight, especially for operators with prior staffing and quality concerns. For investors, the episode serves as a cautionary tale about due‑diligence on lease obligations and cash‑flow resilience. As the April status conference approaches, the industry will watch whether iCare can shepherd the facilities to a stable ownership structure, setting a precedent for future interventions.

Next Step Properties Placed in Receivership, iCare Tasked With Interim Operations

By Amy Stulick · February 6, 2026

Eleven nursing homes operated by Massachusetts‑based Next Step Healthcare have been placed in court‑appointed receivership, with iCare Health Network in Connecticut hired to manage day‑to‑day operations.

A Middlesex County judge made the decision following news from Next Step’s landlord, companies affiliated with Cuarzo Healthcare REIT, that the operator is in severe financial distress, owing nearly $15 million in unpaid rent and fees (mostly from 2022‑2023). Another $3 million is owed to the lender, according to an article from the New Bedford Light.

Audits show insolvency, chronic late or missed rent payments since 2022, and poor inspection records which include cases of immediate jeopardy to residents.

Next Step disputed the claims in the New Bedford article, stating its finances are stable and improving. The operator said past rent issues were due to the pandemic and emphasized that resident care is continuing.

Michael Flanagan, a Kansas City lawyer and receiver for the 11 Next Step properties, has tasked iCare with stabilizing care and potentially transitioning the facilities to a new, permanent operator as state advocates call for close regulatory oversight, considering Next Step’s history of staffing and quality concerns.

iCare VP of Business Development David Skoczulek told the New Bedford Light that 22 representatives from the Connecticut operator were sent to the Next Step properties to meet with staff, and that the transition is going smoothly.

Next Step owns 14 nursing homes across the state, 11 of which are now in receivership; more than 1,000 people live in Next Step’s facilities. The next scheduled hearing in the receivership case is a status conference in April.

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Companies featured in this article:

iCare Health Network, Next Step Healthcare

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About the author

Amy Stulick – A Buffalo transplant living in LA, Amy has worked as a business journalist for more than two years and has been in the profession for seven‑plus years. She is an avid (sometimes poolside) science‑fiction reader, nature lover and roller‑derby novice.

Contact: [email protected], 312‑967‑0762