The Pennsylvania Department of Human Services has joined the lawsuit seeking to have a receiver appointed to run Cedar Haven Healthcare Center, the one-time county home that its landlord says owes millions of dollars in past due rent and other debts.
In pleadings filed in Lebanon County court on Nov. 26, the DHS claims that Cedar Haven Acquisition Corporation LLC, the facility’s operator, owes the state “at least $4,545,297.31 in unpaid nursing facility assessments” as of June 10, 2025, and that “[a] failure to pay these assessments could result in notification to the Department of Health in order to prevent the renewal of the nursing facility license.”
Cedar Haven’s landlord, 590 South 5th Avenue LLC, filed suit on Oct. 30, alleging that it is owed over $1,400,000 in past due rent. It asked the court to appoint a receiver to run the facility and seek a resolution with its creditors.
The amount the commonwealth alleges it is owed is considerably more than the $1,000,000 estimated by 590 South 5th Avenue when it filed suit.
Read More: Landlord says Cedar Haven owes millions, wants receiver appointed
The court has appointed Kansas attorney Michael Flanagan as temporary receiver, and prioritized payment of the facility’s operating expenses over other obligations, including the commonwealth’s assessments.
Flanagan has filed a list of over 600 Cedar Haven creditors. It does not specify which are current, past due, or disputed, nor does it list amounts owed.
In a petition to intervene in the litigation, filed by the Pennsylvania Attorney General, the commonwealth is asking the court to order Cedar Haven’s receiver to give first priority to the past due assessments it says it is owed.
At a Nov. 26 hearing, attorneys for the parties told Lebanon County Judge Charles Jones that they had been unable to hammer out mutually agreeable receivership terms, but would continue negotiating.
Charles Blalack, who court documents indicate has sole or controlling interests in Cedar Haven Acquisition Corp., Stone Barn Holdings LLC, its parent company, and Fremont Lake LLC, its main lender, was not present at the hearing.
Jones continued Flanagan as temporary receiver and urged the parties to come to an agreement. As of Monday, Dec. 1, online court records gave no indication that an agreement had been reached or that a hearing had been rescheduled.
Questions about this story? Suggestions for a future LebTown article? Reach our newsroom using this contact form and we’ll do our best to get back to you.
Join our community of local news champions.
Cancel anytime.
Still no paywall!
Fewer ads
Exclusive events and emails
All monthly benefits
Most popular option
Make a bigger impact
Already a member? Log in here to hide these messages
An informed community is a stronger community. LebTown covers the local government meetings, breaking news, and community stories that shape Lebanon County’s future. Help us expand our coverage by becoming a monthly or annual member, or support our work with a one-time contribution. Cancel anytime.