In 2002, Schron was advised by his friend and attorney, Leonard Grunstein, to purchase two large nursing home chains with over 18,000 patients and 183 facilities spread out over 27 states for a combined $1.4 billion. In 2003, the bankrupt Integrated Health Services (renamed SavaSeniorCare) was purchased and in 2004, Mariner Health Care was purchased."The SeniorCare Investor: SNF Business At A Crossroads--Lawsuits, Verdicts, Reimbursement: Bracing For The Future", Levinassociated.com, November 14, 2013 Schron financed the entire transaction.New York Courts: "Rubin Schron, et al., Plaintiffs, v. Troutman Saunders LLP, et al., Defendants, Nycourts.gov, retrieved October 25, 2013Bloomberg: "Real Estate Investor Schron Sues Partner, Lawyer Over Fiduciary Breaches", Karen Freifeld, Bloomberg.com, June 23, 2010 They split each company into two entities: a real estate company which would hold the real property (run by Schron); and an operating company that would run the nursing homes (run by Grunstein and a banker named Murray Foreman). The operating company would make lease payments to the real estate company. The partnership deteriorated after Schron was told by Grunstein that he could not raise rent payments even while interest rates were rising. A lawsuit resulted and Schron countersued to exercise a $100 million option to purchase the nursing home side of the business. Schron, represented by attorney Andrew J. Levander, prevailed and in 2012, he took full control of the two nursing home companies with a combined $1.4 billion in revenues.
