Memorial Health is looking for a new owner for its Gables operation.
The health system announced Monday that it is looking to sell its 112-bed facility offering skilled, intermediate and dementia care at 390 Gables Drive in the Green Pastures housing addition.
Memorial President and CEO Chip Hubbs said the move boils down to what is best for the patients at the facility and the community as a whole. Operating a nursing home, while a related field, isn’t the core business of a health care system, Hubbs said.
“We just feel like we’re no longer the best owner for the facility,” Hubbs said.
The announcement comes after months of discussions with the Memorial Health Board of Trustees about the future strategic direction of the system. The Union County Commissioners are also providing guidance in the exploration process as the facility is owned by the county which, for decades, has engaged Memorial Health to provide operational oversight.
While owned by the county, the original construction of the Gables in 2001 was funded by Memorial and the system will hold the profits of the sale.
“I have seen the special nature of The Gables since I arrived in 2004,” Hubbs said. “Our residents deserve the highest quality care and improvements that only an expert in nursing home operations can provide.”
Hubbs said organizations that specialize in the operation of nursing homes have depth in staff positions that Memorial can’t match. He added that the local system doesn’t have service lines in areas such as hospice and home health care which traditionally operate in conjunction with such facilities.
“Our people that work at the Gables are doing a great job,” Hubbs said. “That’s just not our business.”
A release provided by Memorial notes that, nationally, hospitals have begun reevaluating the services they provide to ensure patients receive the highest quality care. The release adds that aging care communities across the country face increased financial difficulties and Memorial Gables is no exception, reporting significant losses.
Still, Hubbs said the financial component of the move is secondary to finding a buyer who will operate the facility in the best possible way for the community.
“This isn’t a money thing,” Hubbs said.
Hubbs said the eventual buyer may not be the company the offers the most money.
“Yes, it’s a sale… but at the end of the day we want to find the right buyer,” he said.
The county commissioners appear committed to ensuring the buyer is a solid community partner also.
“Finding a new owner who is collaborative, believes in the quality work we do here, and ultimately wants to serve our community is the right next step for healthcare in Union County,” Steve Robinson, President of the Board of Union County Commissioners, said.
Hubbs said current employees at the Gables will be offered a bonus to stay with the facility after the transition.
Also, workers will have the option to stay in the Ohio Public Employee Retirement System (OPERS), though that benefit may not exist forever. Hubbs explained that such options exist only for the first sale from a public to private company, meaning if the operation sells again the workers would no longer be covered under OPERS.
Hospital officials said they recognize the Gables brand is a trusted name in the community. That point is echoed in the fact that the facility has been named 15 times in the Journal-Tribune’s Reader’s Choice Awards.
“There is an affinity in the community for the Gables,” Hubbs said.
The CEO said the move is supported overwhelmingly by Memorial’s board of trustees as the best move to ensure the facility continue to evolve with the needs of a growing community.
“Residents at Memorial Gables are like family and their caregivers are instrumental in their health and healing,” said Memorial Health Board of Trustees Chairperson Emily Wieringa. “Our desire in seeking a new owner is driven by the belief that we will be a better facility, employees will be more satisfied, and patients will continue to receive great care with an expert in nursing home operations at the helm.”
While no timeline for the sale was offered, the release stated that such searches can take time.
“Nothing changes for residents or employees during this search,” the release states.” New ownership explorations often take many months, and after a partner is found there are extensive discussions to be had before any agreement can be finalized.”
Hubbs also noted that the sale shouldn’t be interpreted as any type of precursor to the sale of Memorial to a larger health system. He stated repeatedly that Memorial officials are committed to maintaining the county-owned health system and the sale of the Gables will put it in a position of strength to deal with the changing needs of the surging population growth in the area.
“We are as committed to being independent as we ever have been,” Hubbs said.