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Montgomery County sells nursing home for $41 million

Published On: Mar 07 2014 11:25:29 AM EST   Updated On: Mar 07 2014 07:16:48 PM EST

Montgomery County finalizes sale of nursing home


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.