Sunnyview sale OK'd
Butler County on Wednesday sealed the deal to privatize the Sunnyview Nursing and Rehabilitation Center, selling the facility to a New Jersey company for $20.4 million.
The county commissioners approved the sales contract with Investment 360 of Lakewood, N.J., to buy the 220-bed nursing home.
Commissioners Bill McCarrier and Dale Pinkerton supported the move while Commissioner Jim Eckstein dissented.
McCarrier said the sale was necessary due to fiscal concerns and health care regulations.
“The time has arrived when small nursing homes cannot exist,” he said.
Sunnyview was projected to lose more than $1 million for 2014.
According to McCarrier, health care companies can operate nursing homes more efficiently than government.
He said Sunnyview management, particularly administrator Sue Murray, has done an excellent job, but the viability of the facility lies with privatization.
“They don't have the corporation behind them,” McCarrier said.
The sales price covers the nursing home and 7.8 acres off Morton Avenue in Butler Township.
The county retains ownership of the adjacent property where the Area Agency on Aging, District Judge Kevin O'Donnell's office, the Conservation District and the Emergency Services building, which includes the 911 dispatch center, are located.
Bruce Peckman, a managing partner of Investment 360, was pleased the deal was approved.
“I'm elated,” Peckman said after the meeting. “We feel honored.”
He said the company plans to meet with representatives from SEIU Healthcare, which represents 231 union workers out of a total staff of 252.
Peckman said workers salaries won't be impacted by the privatization and health benefits would not be drastically cut.
However, he said the current benefits package is cost-prohibitive.
“The county couldn't afford to continue it,” Peckman said.
Matt Yarnell, executive vice president for SEIU Healthcare, said in an interview he hopes to begin negotiations next week.
“We had hoped we could remain a county-owned home, but we'll bargain hard,” Yarnell said.
He said a priority of the union is to ensure quality care is maintained at Sunnyview.
“When nursing homes are sold to for-profit corporations, the focus shifts to making money, rather than providing care,” Yarnell stated in an e-mail. “Butler County seniors are not for sale and no corporation should look at them and see dollar signs.”
According to Yarnell, quality ratings drop for nursing homes that become privatized.Peckman stressed Investment 360, which operates four- and five-star facilities, would maintain the high level of care provided by Sunnyview now.The company operates 17 other health care facilities in six states: Pennsylvania, New York, New Jersey, Maryland, Connecticut and Minnesota.Eckstein criticized his colleagues for not bringing up the prospect of a Sunnyview sale during their 2011 election campaigns.“They didn't say they wanted to sell Sunnyview,” he said.Eckstein said McCarrier and Pinkerton would have lost in that election if they had done so.McCarrier disagreed, saying most of the feedback he's received from the public, a ratio of 200 people to 20, supported a Sunnyview sale.Eckstein again spoke during public comment, comparing the county's ownership of Sunnyview to a marriage.“Dale Pinkerton and Bill McCarrier just want a divorce,” Eckstein said.When Eckstein exceeded the three-minute limit for public comment, McCarrier hit the chairman's gavel and said Eckstein's time was up.After Eckstein finished his sentence anyway, he told McCarrier: “You know where you can stick your gavel.”“You're very professional, James,” McCarrier replied.While the commissioners differed on Sunnyview's fate, all three praised Investment 360.Pinkerton reiterated the company owners use a hands-on approach, which was evident during the commissioners' visit earlier this year to some of their other facilities.“They actually know most of the patients' names and they know all the employees' names,” he said.McCarrier also lauded the owners.“These are fine people,” he said.Eckstein also had nothing but positive things to say about the company.“They're very big on family values,” he said.Investment 360 was one of eight firms that sent proposals to buy Sunnyview. They were required to offer no less than $13.5 million to be considered.An appraisal by Integra Realty Resources set Sunnyview's value at $17.5 million.The other seven companies and their final offers were Tack Family Ventures of Butler with $15.8 million, TL Management of Brooklyn, N.Y., with $16.5 million, Aviv REIT of Chicago for $17 million, CareRite Centers LLC of Lakewood, N.J., with $18 million, Zenith Healthcare/Gray Eagle LLC of New York with $18 million, Sentosa Care of Woodmere, N.Y., with $18.2 million and Reliant Senior Care of Philadelphia with $19 million.Investment 360's purchase price includes buying Sunnyview's account receivables while the other offers did not.
The Sunnyview Nursing and Rehabilitation Center was sold Wednesday by the Butler County commissioners. Here is a look at the deal.New owners: Investment 360 of Lakewood, N.J. It operates 17 other health care facilities in Pennsylvania, New York, New Jersey, Maryland, Connecticut and Minnesota.Selling price: $20.4 millionClosing date: To be determinedProperty: 7.8 acres off Morton Avenue in Butler TownshipBeds: 220Staff: 252; SEIU Healthcare union represents 231 of those workersBudget: nearly $20 millionStart: In 1899 the Alms House was built. It became Sunnyview Nursing Home in 1963.
