The County of Rockland has finalized the transfer of ownership of the Summit Park Hospital and Nursing Care Center to the Summit Park Acquisition Group for $36 million.
Shalom Braunstein, manager of Sympaticare LLC, Sympaticare Health LLC and Summit Park Acquisition Group LLC, finalized a deal for a 99-year-lease with option to buy all pertinent and personal property, $24 million for the nursing care center and $12 million for the hospital both in, “as is”, condition.
After $12 million in outstanding bonds, $8 million in legacy costs, $2 million in closing costs and $4 million in relocation costs for existing county departments, the county should make approximately $10 million.
Rockland County Executive Edwin Day said this money will be used to get the county back in good fiscal standing since, in January Rockland was $42,000 away from default.
“The idea here is to do two things; number one, which is not related to this to an extent, is to have government operations operate in the black, which we are. The Summit Park facility has been a drain on us, without that drain financially, we have the ability to operate in the black, which obviously, is a wonderful thing for tax payers. That will happen this year, I’ve told people that already. The continuing financial picture will improve if we continue on that path.” Day added. “We’re taking positive steps every day. This is another benchmark item that we have hit to ensure that the fiscal health of this county is sound and like I said we’re on a path, that will take time, but the goal here is to get us back in good fiscal condition and we will do that.”
Day promised that, above all, he will use any money he can for deficit reduction and that he is completely committed to that cause.
Part of the purchaser’s agreement is also to keep all current residents and patients who cannot be moved without their written consent. Also, the purchaser has agreed to consider all current employees for continued employment. Although the purchaser does not have to keep the current employees, as they do the patients and residents, Day and Braunstein assume they will need the existing employee to run the facility and that layoffs should not be a major issue.
The purchaser still needs to acquire a New York State Health Certificate of Need for both the nursing care center and hospital to be approved and has currently already applied for the CON for the nursing care center. Both must be applied for within 30 days of the PSA and once approved the nursing care center deal will close within 60 days and the hospital within 30 days.
The purchaser will then need to give the county 70 days notice to cease county operations before full takeover of the facilities.
Ulster County last year told its Golden Hill nursing home to a private operator and Orange County is currently enmeshed in a court battle over its attempts to sell its Valley View nursing home. All three counties have used the local development corporation mechanism to implement the transfers.