Schuylkill County sells Rest Haven nursing home

Sept. 01--Schuylkill County has completed the sale of its 142-bed nursing home to Lakewood, New Jersey-based Investment 360° for $11 million.

The private operator took over the facility at midnight Tuesday.

Stagnant Medicare reimbursement and rising care costs have forced many counties to look at the future of their county-run homes. Northampton County Executive John Brown said earlier this year that the county's Gracedale Nursing Home faces a $39.5 million four-year operating loss.

Northampton County residents voted 3-1 in a non-binding 2011 referendum to keep the home under county ownership.

Lehigh County has also been pondering the future of its Cedarbrook nursing home.

"Investment 360° was a strong partner in this transaction, and we are confident that the company will be a good partner for the people of Schuylkill County for years to come," said Board of Commissioners Chairman Frank J. Staudenmeier. "The completion of this transaction begins a new era for Rest Haven, as it will be operated by a private corporation with the expertise and resources to provide great care while also financially reinvesting in the nursing home."

The county is expected to save about $2.2 million a year in operating expenses including workers compensation costs. The deal includes guarantees that physical improvements will be made to the facility within two years and that former county workers be offered first shot at jobs with the new operator.

Investment 360° operates five other nursing homes in Pennsylvania.

It was not the county's first choice. The commissioners tried to negotiate a deal with Nationwide Health Care Services, but was unsuccessful. Ten companies submitted bids for the facilty.

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