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NBH Sells Sweetwood, Sweet BrookBy Tammy Daniels
iBerkshires Staff
06:00AM / Tuesday, August 17, 2010
 | | Sweetwood in Williamstown has been sold. |
NORTH ADAMS, Mass. — Northern Berkshire Healthcare has sold off Sweet Brook Care Centers and Sweetwood Continuing Care Community for $3.8 million to a company that operates a wide range of senior care facilities in New Jersey.
Update: The North Adams Transcript reports the total sale was $6.6 million. The two facilities were operated as Northern Berkshire Community Services Inc. and we could only find a deed for $3.8 million on that appeared to include both properties. The Transcript, however, said it had found a separate price for Sweet Brook of $2.84 million.
DES Senior Care Holdings LLC, a Delaware company with headquarters in Fort Lee, N.J., purchased Sweet Brook of Williamstown Rehabilitation and Nursing Center and Sweetwood of Williamstown Independent Living Community as 1611 Cold Spring Road LLC and 1561 Cold Spring Road LLC, respectively.
The sale, dated Aug. 12, took effect on Sunday, Aug. 15, with Sweetwood and Sweet Brook providing the same care "from largely the same dedicated employees," according to a statement from the health care system.
Sweetwood was put on the market more than two years ago because NBH officials said it didn't fit the health system's portfolio of health care properties. The high-end residential facility was designed 23 years ago with an eye toward retirees looking for independent living with a clublike atmosphere. Sweetwood residents did get the choice of moving on to Sweet Brook Care Centers, the adjacent 184-bed skilled nursing facility that also offers rehabilitation services and care for Alzheimer's and dementia.
Proceeds from the sale will be used to address NBH debt associated with operating the facilities and investments in equipment and facilities, both to meet its mission as an acute care provider for the region and in response to bondholder requests.
In March, Fitch Ratings downgraded NBH's bonds because of "worsening operating losses, a deteriorating cash position, and continued delay in the sale of its underperforming senior care businesses."
Sweetwood was picked up by NBH in 1999 in a package deal with the nursing home. But the financial crash has taken a toll on the 70-unit luxury residence and NBH was hoping to off-load the facility. The health-care system's also been struggling for the past couple years as pension funds lost value and governmental reimbursements for Medicaid and Medicare failed to keep up with costs. It's laid off staffing and is in the middle of its second difficult union contract negotiation in a year.
"Selling Sweetwood and Sweet Brook will support the continued operation of this community resource and I am confident this move will benefit the Northern Berkshire community," said Richard Palmisano, president and CEO of NBH. "It also allows NBH to focus our energy on the core health-care resources we provide to the community."
The health-care system is still taking a bath on the properties since they were purchased for $16.3 million from the Hickey family a decade ago under a previous administration.
DES Senior Care Holdings is one of several companies of health-care industry veteran Daniel E. Straus. He founded CareOne LLC in 1999 and it now operates nearly 40 senior living and health care facilities in New Jersey and a half-dozen in Virginia and North Carolina. CareOne is described as "a family-owned and operated health care continuum."
NBH officials said they had considered more than 120 potential purchasers before selecting the company, which was recently certified to operate in Massachusetts. "The goals were to identify a buyer who would operate both Sweetwood and Sweet Brook in a way that meets the needs of the residents, while investing in the facilities to promote high quality care for the region's seniors," according to the press release.
"Both Sweetwood and Sweet Brook have been a part of this community for years, and we look forward to continuing to offer the quality of health care and independent living services that residents of Williamstown as well as throughout the Northern Berkshire community have come to expect," said company spokesman Peter J. Ward. "We look forward to being a part of this community and providing residents and their families the best in skilled nursing care and independent living services available."
A call to Ward for comment was not returned on Monday.
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sale was much more than that! Better do your math again - they sold separately.
Editor: I searched the online Registry under every name I could think of. The only deed I could find had the $3.8M. It's still not much considering how much they paid for these properties. I've learned that the other piece of the sale was not recorded online but is in the documents at the Registry. What's up with that? | | from: in the know | on: 08-17-2010 08:16AM
I Agree (4) - I Disagree (1) |
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| DES Holdings and CareOne LLC are subsidiaries of Aveta Health. They are the 13th largest operator of nursing homes in the US, with recent gross income of $2.2 billion, and are highly regarded in the industry. Given what the Northern Berkshire Health Systems has done in recent years to run Sweetwood and Sweet Brook into the ground, this is a great step in the right direction. | | from: Sweetmomma | on: 08-17-2010 04:08PM
I Agree (11) - I Disagree (16) |
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| The corporation that recently bought Sweetbrook CareCenter has already shown where their bottom line is.. by downsizing the staff members that care for the residents, adding more unemployment to the already economically depressed North Adams and Eastern New York area. The new management has already stated that they are Anti-Union, stating that "We dont need a union here". Tell that to the nursing and physical therapy staff that were let go for trumped up reasons or no reason at all. And tell that to the good people that reamain who have had to take what amounts to a cut in pay after more benefits were cut. We know what the corporation that calls itself "Care One" really cares about, the bottom line and only the bottom line. | | from: person in the know | on: 08-24-2010 11:20AM
I Agree (16) - I Disagree (3) |
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| My mom was in Sweetbrook for appox 1 month right around the time of this sale. The quality of care was poor given the 275.00/day charge. Now they can't even produce a final bill which accurately reflects my mother's stay. The over charges are in the 9000.00+ range. This place is not somewhere you should place your loved one. I feel bad for the overworked staff that is left. | | from: Childof_former_resident | on: 10-21-2010 10:14PM
I Agree (2) - I Disagree (2) |
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As of Oct 2010, the proposed new residence contract needs improvement. It's too one-sided in favor of the operator. Biggest gap is operator can raise the rates as often and as much as it wishes. Lack of disclosure on contract of sale by NBH deprives residents of a clear understanding of NBH obligations assumed by buyer entities. No explanation why anyone has a legal obligation to sign anything. Nice try, dudes! They shift to incumbent resident the risk of resale upon death or departure, without any commitment to allocate funds first to units being vacated, particularly where many vacancies now exist, so the operator can fill the empty units before reselling the occupied /vacated ones. See your attorney or ask around in the W'town / North Adams area.
They got a bargain basement price and need to invest in increasing occupancy through effective marketing. The facilities are great, but NBH failed to market effectively. Staff is excellent and works hard. We think CareOne should share their business plan with residents, family, local community so that this valuable asset can realize reasonable ROI without screwing incumbents.
Want more info? Contact Sweetwood Residents' Council. Ready to collaborate but not lie down. | | from: Loving child of a resident | on: 10-23-2010 08:40PM
I Agree (1) - I Disagree (1) |
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OOOPS. Please delete the prior comment of Oct. 23 around 10:30 PM. There's a story here, but let's not put it out for publication till we move it along a little further.
Thanks.
| | from: Attorney for resident | on: 10-24-2010 12:47PM
I Agree (0) - I Disagree (0) |
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