Montgomery County sells nursing home for $41 million
Updated On: Mar 07 2014 06:16:48 PM CST
Montgomery County is now officially out of the nursing home business.
On Thursday, the county closed the deal to sell Parkhouse Providence Pointe to Mid-Atlantic Health Care for $41 million, which is more than $75,000 per bed--way above the average price per bed for a nursing home of $60,400.
Mid-Atlantic is a Maryland-based operator of skilled nursing facilities in Maryland, Pennsylvania and Delaware.
Parkhouse had been a county-run nursing home for the past 76 years, but according to Montgomery County Commissioner Josh Shapiro, the center had become a financial drain on the county in recent years.
Shapiro said the trend has been for counties in Pennsylvania to get out of the nursing home business, as it is not a core function of county government.
At one time, 50 Pa. counties operated their own nursing homes, including Lehigh [Cedarbrook] and Northampton [Gracedale] counties.
In the past eight years, 12 have sold their facilities, and now only 28 own their facilities, Shapiro said.
Shaprio said Mid-Atlantic's vision is for Parkhouse to become a "state-of-the-art skilled nursing center with a cutting edge short stay 'Step-Up' unit that will serve the needs of citizens requiring short stay acute rehabilitation."
Under Mid-Atlantic, Parkhouse will continue to accept and serve the needs of both Medicare and Medicaid recipients without hesitation, Shapiro said.
Currently, 86 percent of Parkhouse residents are on Medicare or Medicaid; the average of Mid-Atlantic’s five Philadelphia facilities is 89 percent and they intend to maintain that commitment to those most in need.
As part of the deal, Mid-Atlantic agreed to keep all current employees who want to stay at their current salary levels and at their current seniority level.
Because of the sale, the county will net $28.6 million after deducting expenses.
Of that $28.6 million, $8.5 million will be used to pay off debt related to the Parkhouse facility and the remaining $20.1 million will go into the county's reserve fund.
Parkhouse Providence Pointe is located at 1600 Black Rock Rd. in Royersford.
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