STEVENS POINT – Portage County residents have more information about a possible future for the Portage County Health Care Center.
An Aug. 28 letter of intent from Gateway Healthcare LLC, a Wisconsin subsidiary of California-based Ensign Group, was included in an agenda packet for a 3 p.m. Sept. 2 joint meeting of the Portage County Board’s Ad Hoc Committee and the Space and Properties Committee.
Gateway was the preferred potential buyer identified Aug. 26 by the Ad Hoc Committee, which was tasked with vetting interested buyers.
Here’s what we know about the purchase price, planned improvements to the facility, the future of current employees and more, according to the letter.
How much will Gateway pay to acquire the property containing the facility?
A purchase price of $2.7 million for the property located at 825 Whiting Ave. in Stevens Point is revealed in the letter. The property contains the 48-bed skilled nursing facility commonly known as the Portage County Health Care Center.
A cash earnest deposit of $55,000 will be paid upon the end of a due diligence period expected to end about 60 to 90 days after the County Board gives final approval of a resolution to sell the property. If the board approves the resolution in the coming weeks, the date of a possible closing on the sale could occur in December or January.
Will employees keep their jobs through the change in ownership?
Gateway will offer employment to “substantially all employees” currently employed at the county-owned skilled nursing facility, according to the letter. Employees who accept employment will receive credit for their prior years of service at the facility.
Will improvements be made to the facility?
At least $1.3 million will be spent in the first two years of ownership by Gateway to maintain or improve the facility, according to the letter. The improvements will be made according to the facility’s internal capital improvement plan.
Can the County Board consider other buyers within the next two months if they accept the letter?
No. The letter contains an exclusivity clause that binds the county to work with Gateway to reach an agreement regarding the sale, lease or management of the skilled nursing facility within 60 days of accepting the letter of intent.
Whether or not any committee recommends approval of the letter, the County Board will consider the item at 5 p.m. Sept. 16 in the County Board Chambers at 1516 Church St.
How did the Ad Hoc Committee choose Gateway?
The temporary committee consisting of County Executive John Pavelski, four County Board supervisors, including Board Chairperson Ray Reser, and two citizen members held seven meetings since January to carry out its purpose of identifying a potential buyer for the Health Care Center.
Three of the committee’s members visited facilities owned by three potential buyers, interviewed staff of the facilities and other experts, and conducted other research before concluding Gateway had the most complete plan for the future of the facility, according to discussion in the committee’s Aug. 26 meeting.
What do we know about Gateway Healthcare LLC?
On Aug. 4, Gateway’s parent company, Ensign Group, announced the acquisition of another nearby county-owned skilled nursing facility, Pine Crest Health and Memory Care in Merrill. The 120-bed facility was previously owned by Lincoln County and operated in cooperation with Marathon and Langlade counties as a part of North Central Health Care.
Jack Pines Healthcare LLC, another Wisconsin-based Ensign Group subsidiary, completed the purchase of Lincoln County’s skilled nursing home for $9.5 million on Aug. 7, according to reporting by the Merrill Foto News.
Leading up to the sale, 141 full- and part-time staff members of North Central Health Care received termination notices. About 126 were extended offers of employment by Ensign and two transferred to other roles in North Central Health Care, leaving 13 without jobs, according to the Foto News.
What is the timeline for further decisions on a possible sale?
Gateway Healthcare LLC will give a presentation at 3 p.m. Sept. 2 to a joint meeting of the Ad Hoc Committee and the Space and Properties Committee. The committees will consider the Ad Hoc Committee’s recommendation of Gateway as a potential buyer of the facility and may approve a recommendation to sell to the full County Board.
The Health Care Center Committee will see a similar item on their agenda at 4 p.m. Sept. 9.
The County Board next meets at 5 p.m. Sept. 16 in the County Board Chambers at 1516 Church St. The committee meetings will be held in the Portage County Annex at 1462 Strongs Ave.
Erik Pfantz covers local government and education in central Wisconsin for USA TODAY NETWORK-Wisconsin and values his background as a rural Wisconsinite. Contact him at epfantz@gannett.com.
This article originally appeared on Stevens Point Journal: Letter from potential Health Care Center buyer reveals details of sale, future of facility
Reporting by Erik Pfantz, Stevens Point Journal / Stevens Point Journal
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