California's Attorney General conditionally approved the sale of St. Elizabeth Care Center, a 52-bed nonprofit nursing home in North Hollywood, on the condition that the buyer maintain protections for current residents and ensure continued access to care. The facility will transfer from Providence Health System – Southern California to Ensign Group, Inc., a for-profit healthcare company.
St. Elizabeth has served the community since 1964 and primarily serves elderly residents, with Medi-Cal and Medicare beneficiaries accounting for a significant share. Ensign has been operating the facility since June 1, 2025, after receiving approval from the California Department of Public Health. The transaction is part of Ensign's broader acquisition of Providence facilities in Alaska, Oregon, and Washington, though St. Elizabeth is the only California facility included.
The conditions will remain in effect for seven to 10 years and include maintaining Medicare and Medi-Cal participation with at least 30% of skilled nursing beds reserved for Medi-Cal beneficiaries. The facility must maintain sufficient direct-care staffing consistent with residents' needs and employ a full-time licensed nursing home administrator.
The approval also requires safe resident transfers and discharges, limits rent increases with increases above 2.5% requiring Attorney General approval, and restricts payments to affiliated entities and debt that could threaten financial stability or reduce direct-care staffing. An Attorney General-appointed monitor will oversee compliance with the conditions.