July 1, 2014 at 8:35 PM
For Sale by the Archdiocese of Philadelphia—one Lansdale nursing center.
St. Mary Manor is one of seven nursing centers being sold to Center Management Group of New York for $145 million, the Archdiocese announced Tuesday.
The money will be used to pay off debts to management group Catholic Health Care Services, according to the Archdiocese.
Center Management Group operates 15 nursing centers in New York and New Jersey.
No residents will be displaced in the sale agreement, regardless of "Medicare, Medicaid, private or commercial payor status," per the report. No employees will lose their jobs, but become employees of Center Management Group and receive healthcare benefits.
The Archdiocese had a $39.2 million operating deficit at the fiscal year ending June 30, 2012.
The sale of the nursing centers comes on the heels of other cost-saving measures recently undertaken by the Archdiocese, including the sale of the Archbishop's residence and a sale of a property in Ventnor, NJ. Staff at the pastoral center was cut by 25 percent, according to the Archdiocese.
The fiscal report for year-end June 30, 2012 also showed "a significant underfunded balance sheet liabilities remained in the categories of the Trust and Loan Fund, the Self Insurance Reserve, the Priests' Pension Plan and the Lay Employees' Retirement Plan."
The underfunding is as follows;
- Trust and Loan Fund-current underfunding estimated at $49.8 million after an allocation of $30 million from the cemeteries transaction (i.e. this liability was underfunded by $79.8 million as of June 30, 2013).
- The Self Insurance Reserve-current underfunding estimated at $18.9 million after an allocation of $11.5 million from the cemeteries transaction (i.e. this liability was underfunded by $30.4 million as of June 30, 2013).
- The Priests' Pension Plan-current underfunding estimated at $76.3 million after an allocation of $11.5 million from the cemeteries transaction (i.e. this liability was underfunded by $87.8 million as of June 30, 2013).
- The Lay Employees' Retirement Plan (underfunded by $142 million as of June 30, 2013).
"This agreement will serve the Archdiocese and its people well by ensuring the nursing homes presently operated by Catholic Health Care Services will continue to be dignified centers of care for the elderly in the Catholic tradition and in accord with the moral and ethical teachings of the Church," said Archbishop Charles J. Chaput in a press release. "I did not arrive at this decision lightly. It came only after a great deal of consultation, discussion and prayer."