At the time of ESI’s engagement, the facility was operating at an 83% occupancy rate and held a

2-star rating with an abuse icon from the Centers for Medicare and Medicaid Services

(CMS). Operational challenges included managing high costs due to agency staffing, a large

number of three-bed wards, and underutilized areas, such as the adult day care center and

potential dialysis center. These factors hindered the community from reaching its full potential.

ESI identified these challenges as opportunities for value enhancement. By highlighting the

facility’s strategic location near 12 major hospitals, the potential for optimizing revenue through

Massachusetts’s acuity-based PDPM payment model, and the recently secured behavioral

health contract, ESI positioned Advocate Healthcare of East Boston as an attractive acquisition

opportunity.

Through a confidential marketing process, ESI reached out to a select group of regional and

national buyers within their network. The facility was ultimately acquired by an experienced

regional operator ready to transition into ownership. This deal marks their first acquisition in the

space. ESI not only guided the buyer/operator through the complexities of the transaction but

also facilitated a regional capital partner to ensure the deal’s success. This outcome highlights

ESI’s expertise in partnering operators with capital to maximize value.