Sale of Cedar Haven nursing home delayed until December
Lebanon Daily News (PA)Nov 26, 2014
The commissioners said Wednesday that Friday's deadline on closing the
The sale was originally to be finalized on
When CHR did not have its financing arranged in time to meet the original closing date, the commissioners agreed to push it back a month . The company did, however, take over responsibility for the nursing home's employees on
When
Under the original sales agreement CHR paid the county a
On Tuesday, the commissioners set new terms for the closing that will cost CHR another
The hold up, said administrator
"There is more than one component of financing. It is not quite as simple as going to the bank for a home mortgage," he said. "For CHR to commit that much more in deposit, I think, demonstrates they are willing to risk that and are pretty confident they will get it done in time They do seem to be getting closer and closer each day."
The latest developments have increased the confidence of all three commissioners that the sale will get done this year.
Chairwoman
"A lesser (down payment) amount was offered and I expressed my opinion that less than
Commissioner
"I certainly feel a lot better," he said. "I think they are at a point where there is no way to turn back. They will find that money somehow."
In addition to the substantial non-refundable down payment and the lender's commitment, Commissioner
"I have a very high comfort level this will all get done by the end of they year," he said.
If for some reason the deal collapses, the county is protected by a management agreement it has with CHR that would keep the company running Cedar Haven through April, which would give the commissioners time to finalize a deal with one of the other companies that bid on the nursing home, said county administrator
Other than finalizing the sale, CHR's transition in taking over Cedar Haven has been good, with the number of filled beds filled slightly higher than when the county operated it, Wolgemuth added.
"There census is up to 315 out of 320 beds, which is really good," he said. "They made a heavy public relations effort to fill beds. Things are also going well in dietary and short-term rehab. They've done pretty well in a short time."
The sale of Cedar Haven was prompted by the escalating financial demands its operation was putting on the county. This year, the day-to-day operations of running the nursing home cost the county
The sale of Cedar Haven has implications for the county's 2015 budget which includes a
Both issues will be addressed Thursday when the commissioners introduce the budget, Wolgemuth said.
Money from the sale of Cedar Haven will be allocated in the budget to cover the pension contribution and the shortfall will likely be covered using reserve funds, he said.
"So long as we have an agreement of some sort in hand (with CHR) then that money is promised to the county," Wolgemuth said. "We anticipate a lot of things in revenue for every budget, including payment of real estate taxes and grants. The proceeds from the sale of an asset is just another expectation of revenue."
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