Stephen Guillard was CEO of several large skilled nursing facility operators including HCR ManorCare and was chairman of the Alliance for Quality Nursing Home Care, a trade group that represents large for-profit nursing home companies.
But the liability is far less than speculated in the market, with rumors circulating that the group's investment arm was nursing a much larger black hole in its finances.
Reductions in hospital spending could be behind some of the slowdown in specialized nursing-facility costs, said Greg Crist, a spokesman for the American Health Care Association, a nursing-home industry group.