Hurting for Cash, Gov. Owned Senior Housing Facilities Up for Sale

NewImageHurting for cash, some county governments are looking to unload long term care facilities to private companies according to National Real Estate Investor.

Evans Senior Investments is one company that brokered the sale of a South Carolina continuing care community for $11.3 million to Madison Healthcare Management.  Prestige Healthcare, based in Louisville, will operate the property.

“The county had a good facility, and they felt it was time to put it into the management of a company that does this full time,” Bob Norcross, CEO at Prestige Healthcare said during an interview with NREI.  “It seems to be a very good fit between the county and us.”

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According to the article, county-owned and operated nursing homes started to appear around the country in the 1960s.  But the downturn has lead to problems as many government owned facilities have seen their care costs continue to rise.  As a result, county-owned homes are being sold or shuttered — a situation that often raises concerns among local residents about the future of the homes.

The only options often are to sell the properties, or to raise taxes to cover needed repairs and cash shortfalls.

“The county government is not well suited to run specialty properties such as a nursing home,” says Wayne Adams, the county administrator of Newberry County, S.C. Besides the Newberry County facility, he says three county-owned long-term care facilities in South Carolina have been sold in the last two years. Only two county-owned projects are left statewide.

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Cash-Strapped Counties Increasingly Look to Sell Government-Owned Seniors Housing Facilities