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

Eleven nursing homes operated by Massachusetts-based Next Step Healthcare have been placed under court-appointed receivership.

Published on Feb. 6, 2026

Got story updates? Submit your updates here. ›

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. The decision follows reports of Next Step's severe financial distress, including nearly $15 million in unpaid rent and fees, as well as poor inspection records and cases of immediate jeopardy to residents.

Why it matters

The receivership of Next Step's nursing homes raises concerns about the quality of care and financial stability of long-term care facilities, especially in the wake of the COVID-19 pandemic which has put significant strain on the industry. The transition to a new interim operator, iCare, aims to stabilize care and potentially find a permanent solution for the facilities.

The details

A Middlesex County judge placed the 11 Next Step nursing homes in receivership following reports from the operator's landlord, Cuarzo Healthcare REIT, that Next Step is in severe financial distress, owing nearly $15 million in unpaid rent and fees mostly from 2022 and 2023. An additional $3 million is owed to the lender. Audits also showed insolvency, chronic late or missed rent payments since 2022, and poor inspection records including cases of immediate jeopardy to residents. Next Step disputed the claims, stating its finances are stable and improving, and that past rent issues were due to the pandemic.

  • On February 6, 2026, a Middlesex County judge placed 11 Next Step nursing homes in receivership.
  • The next scheduled hearing in the receivership case is a status conference in April 2026.

The players

Next Step Healthcare

A Massachusetts-based operator of 14 nursing homes across the state, 11 of which have now been placed in receivership.

iCare Health Network

A Connecticut-based health network that has been tasked with managing the day-to-day operations of the 11 Next Step nursing homes under receivership.

Cuarzo Healthcare REIT

The landlord of the Next Step nursing homes, which reported that Next Step is in severe financial distress and owes nearly $15 million in unpaid rent and fees.

Michael Flanagan

A Kansas City lawyer who has been appointed as the receiver for the 11 Next Step properties.

David Skoczulek

The VP of Business Development at iCare, who stated 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.

Got photos? Submit your photos here. ›

What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.