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Massachusetts public health officials have blocked Sweetwater Care affiliates from acquiring 11 nursing homes formerly operated by Next Step Healthcare, finding the affiliates “unsuitable.” Sweetwater may appeal, but cannot obtain licenses for the facilities while the decision stands; it continues to manage them under a court-ordered receivership.
Massachusetts public health officials have found Sweetwater Care affiliates “unsuitable” to acquire 11 nursing homes formerly run by Next Step Healthcare, blocking the proposed transfer of the facilities. Sweetwater can appeal the ruling, but it cannot obtain licenses for the properties while the decision remains in effect, according to a report by the Telegram & Gazette cited by Skilled Nursing News.
The facilities remain under Sweetwater’s temporary management while in court-ordered receivership, a status established earlier this year. The ruling blocks the acquisition, but does not immediately end Sweetwater’s role in managing the homes. The state has not identified a buyer who will take over the properties.
Opponents of the sale, including Dignity Alliance Massachusetts, urged state officials to reject it. The advocacy group pointed to Sweetwater’s record at some facilities, citing low staffing, low federal star ratings and financial penalties. Those concerns were part of the public argument against the deal; the state’s stated determination, as reported, is that the affiliates were unsuitable.
Sweetwater’s California history includes a $15 million settlement reached with the state attorney general’s office in July over alleged violations of staffing requirements. The report said Sweetwater facilities had more than 14,000 instances of low staffing. That figure describes reported instances; the source does not provide a period or comparison baseline for it.
Who Will Run the 11 Homes?
The decision leaves the future ownership of 11 Massachusetts nursing homes unresolved, even as Sweetwater continues to manage them in receivership. A change in ownership could affect residents, employees and families, while the licensing bar means Sweetwater cannot complete the proposed purchase unless the ruling changes or another arrangement is made.
The case also tests how Massachusetts screens buyers from outside the state. Advocates and lawmakers have argued that the state needs to examine prospective operators’ histories closely before approving transfers. The ruling shows officials have blocked this proposed acquisition, but it does not by itself settle broader questions about the consistency or reach of state oversight.
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A New Review Framework
Massachusetts enacted a law in 2024 giving public health officials more authority to investigate out-of-state nursing home buyers. The Public Health Council approved the related regulations on October 14, 2026, according to the source report. The timing places the Sweetwater decision amid a broader effort to strengthen scrutiny of prospective operators.
Advocates have also cited the state’s dealings with RegalCare. Before RegalCare bought 12 Massachusetts nursing homes, New Jersey officials had permanently revoked the nursing home administrator license of its owner, Eliyahu “Eli” Merlis. Massachusetts is also in the process of revoking RegalCare’s license to operate nursing homes in the state. The two cases are distinct; the Sweetwater ruling concerns the proposed purchase of the Next Step facilities.
Next Step’s properties have faced financial and staffing difficulties, according to the report. The operator reached a $4 million settlement with the Massachusetts attorney general’s office in 2024, described at the time as the largest settlement for a nursing home operator in the state.
““Unsuitable””
— Massachusetts Department of Public Health, as reported by Skilled Nursing News
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Appeal and Ownership Still Open
It is not clear whether Sweetwater will appeal the decision, what grounds it might raise, or how quickly any appeal would be heard. The available report also does not provide the state’s full written reasoning or say whether officials set conditions that could change the affiliates’ eligibility.
The identity of a future owner is unknown. No sale to another operator has been announced, and the source does not specify how long Sweetwater will remain in charge under receivership. The state’s licensing restriction applies while the ruling stands; its practical duration depends in part on any appeal and the next steps in the receivership.
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Appeal or a New Buyer
The immediate next steps are a possible Sweetwater appeal and decisions about continued management of the homes. If the ruling remains in place, Sweetwater cannot receive licenses for the properties under the proposed acquisition, and another ownership plan will be needed for a permanent transfer.
Residents, families and staff will be watching for updates from state health officials, the court overseeing the receivership and any prospective buyers. The source report does not give a timeline for a sale, a licensing decision on an alternative operator or an appeal outcome.
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Key Questions
What did Massachusetts decide about Sweetwater?
State public health officials found Sweetwater Care affiliates unsuitable to acquire 11 nursing homes formerly operated by Next Step Healthcare, blocking the proposed purchase.
Can Sweetwater appeal the ruling?
Yes. Sweetwater can appeal, according to the source report. It is not clear whether the company has filed or plans to file an appeal.
Who is managing the nursing homes now?
Sweetwater is still temporarily managing the 11 facilities under a court-ordered receivership. The report does not say when that arrangement will end.
Has another buyer been selected?
No future buyer has been identified in the source report. The ownership of the properties remains unresolved.
Why did advocates oppose the deal?
Dignity Alliance Massachusetts cited concerns about Sweetwater’s record at some facilities, including staffing levels, federal star ratings and financial penalties. Those are the group’s stated concerns; the report does not provide the state’s full written explanation for its ruling.
Source: rss
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