Phila. Archdiocese Sells Seven Nursing Facilities, Two In Downingtown

Villa Saint Martha

The Archdiocese of Philadelphia announced June 30 it has sold six nursing homes and one assisted living facility – including two in Chester County – to Center Management Group.

CMG, headquartered in Flushing, N.Y., will pay $145 million for the facilities, which were managed by Catholic Health Care Services. The proceeds will help the Archdiocese pay for underfunded trust and loan accounts and priest and employee pension plans, which the Archdiocese said are underfunded by hundreds of millions of dollars.

Included in the sale are: Immaculate Mary Home in Philadelphia; Villa Saint Martha in Downingtown;   Saint Francis Country House, Darby; Saint John Neumann Home in Philadelphia; Saint Martha Manor in Downingtown; Saint Mary Manor in Lansdale; and Saint Monica Manor in Philadelphia.

Last July, the Archdiocese published audited financial statements for the fiscal year 2012 showing a $39.2 million operating deficit for that period.

Since he arrived in Philadelphia three years ago, Archbishop Charles J. Chaput has repeatedly expressed his commitment to financial transparency and prudent stewardship. His residence and a New Jersey property were sold, the work force at the Archdiocesan Pastoral Center was reduced by 25 percent, and the real estate portfolio went under scrutiny. The Archdiocese aimed to sell select facilities while preserving their Catholic identity and mission.

Founded in 1999, CMG operates 15 nursing homes in New York and New Jersey. Its skilled nursing operations include short term rehabilitation, sub-acute care, long term care and ventilator care. CMG also offers independent and assisted living, homecare, and adult medical day care programs.

Two of its homes, formerly known as the Bishop Mugavero Center for Geriatric Care and the Holy Family Home, were once part of the Saint Vincent’s Catholic Medical Centers of New York System, and continue to be operated in a Catholic, faith-based manner.

“This agreement will serve the Archdiocese and its people well by ensuring the nursing homes presently operated by Catholic Health Care Services will continue to be dignified centers of care for the elderly in the Catholic tradition and in accord with the moral and ethical teachings of the Church,” said Chaput. “I did not arrive at this decision lightly. It came only after a great deal of consultation, discussion and prayer.

Center Management Group has a great deal of experience in the operation of nursing homes and they’ve guaranteed the conditions I set forth some time ago in terms of fair treatment of current employees and residents.”

“We are enthusiastic about the future and grateful for Archbishop Chaput’s confidence in our ability,” said Charles-Edouard Groh, CEO of CMG. “The experience we bring to delivering premier healthcare to our residents, coupled with our commitment to safeguard and fortify the Catholic religious and ethical practices currently in place, will allow the facilities to continue flourishing. We look forward to working alongside those who have staffed and managed them so well as we move forward.”

The Archdiocese said it is working closely with CMG to ensure a smooth transition for employees and residents. CMG has guaranteed fair treatment and health benefits for current employees, and no perceptible change in operations for residents as the sale is completed.

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