Armstrong County Health Center Sold to Philadelphia Group
Armstrong County Commissioners unanimously decided January 5 to sell the Armstrong County Health Center in Kittanning to Premier Healthcare Management, of Philadelphia, for $5.85 million. Committee members who recommended the bid award were to meet with employees Thursday afternoon.
by Jonathan Weaver
Armstrong County Commissioners made their first major decision of 2017 at their first public meeting – selling the Armstrong County Health Center.
Commissioners Pat Fabian, Jason Renshaw and George Skamai unanimously voted Thursday morning to sell the Kittanning facility for $5.85 million.
Details when the property will be turned over, as well as what the money locally will be spent toward, have yet to be finalized.
Executive Director of Administration Dan Lucovich made the recommendation to sell the 115-bed facility to Premier Healthcare Management, LLC, of Philadelphia, on behalf of the nine-member research committee that explored the sale.
About 20 minutes into Thursday’s public meeting, Commissioner Chair Pat Fabian read the motion.
“I had trouble reading that because as I (sat) here (Thursday), this was not an easy decision. This (was) not an easy decision for the three (county commissioners) sitting here.
“(But) over the past 12 months it’s been quite evident that the financial burden of the Health Center has come to a great cost to the taxpayers,” Fabian said. “Legislation is not moving to assist counties like Armstrong County to compete. These were decisions we were elected to make.”
Lucovich and Fabian said a final committee meeting to discuss pros and cons was held Tuesday.
Although commissioners passed a balanced 2017 budget in December, it came at a cost to nearly two dozen county jobs and, as Renshaw pointed out. Renshaw said commissioners had to borrow more than $3 million from NexTier Bank by way of a tax anticipation loan.
“We don’t have the capital improvements to ensure the care and jobs in the community,” Renshaw said. “This was the best decision.”
Health Center Administrator Tom Parsons, Nursing Director Beth Costanzo and Financial Director Janet McKinley were all in attendance yesterday.
Costanzo described the past few months as “tumultuous, hard on all of us.”
“We’re really looking forward to working with our new owners in the best interest of our residents, their families and our staff,” Costanzo said. “It’s overwhelming to think how much needs to be changed.”
A decision on the sale was imminent as Commissioners Pat Fabian, Jason Renshaw and George Skamai last month to indeed ell the 115-bed facility.
“At last for me, Premier set themselves apart from Comprehensive Management. Their story, their willingness to work with the union,” Fabian said. “I think the Health Center will be in good hands with this provider.”
Commissioners first started exploring the sale in August after Susquehanna Group Advisors’ Managing Director Jay Wenger presented commissioners with background on the 115-bed facility – which Armstrong has maintained since the 1970’s.
Premier reportedly will be investing millions of dollars into the facility by way of capital improvements during the next several years.
Local News | jweaver January 5, 2017
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By Rainbow Rider, January 5, 2017 @ 2:16 PM
I’d say it was an easy decision for these 3 but they will say publicly that it was not. They’ve had it planned all along. Overall though, it’s probably the best choice to sell.
By sickofpayingforit, January 5, 2017 @ 6:13 PM
“Legislation is not moving to assist counties like Armstrong County to compete. These were decisions we were elected to make.”
Outstanding Pat Fabian! Agree 1,000%, those are the types of decisions we need made if we are ever going to get out of this rut!
Good job by the commissioners making a fiscally responsible BUSINESS decision. There is a budget involved, it’s a business decision. It isn’t personal.
Nice work commissioners!
By jorn jensen, January 6, 2017 @ 8:13 AM
Loveit, Rainbow Rider, you accept and agree with a business decision. Well-done!
Previous commissioners’ biggest decisions were things like color choice for painting the walls of their offices, what to do about pornogate, and how can we waste more money on 911. These 3 guys are doing the job they were hired to do. I’d still like to see that stretch golf card sent to Cabin Greens.
“Legislation is not moving to assist counties like Armstrong County to compete. These were decisions we were elected to make.” We need a brass plaque made for the front of the courthouse with those words cast-in. When decisions in Harrisburg are made to pass HB & SB 76, and to stand up to unions and make Pennsylvania a right-to-work state, then you’ll see companies wanting to locate here.
“as well as what the money locally will be spent toward,” Who says it has to be spent? Please don’t buy a $5.8 million replacement refrigeration system for the ice rink at the Belmont. Why not bank it, collect the interest and give the taxpayers a 5 year or 10 year tax CUT? In other words, reduce taxes and draw the needed funds from the savings account to replenish the lost taxes of the tax cut. Imagine that! A tax cut due to county INCOME.
Good job, commissioners! Now on to the Belmont!
By scott_starr, January 6, 2017 @ 9:54 AM
a lot of these State/ Federal Grants require “matching” money.
Well, now there is $5.8 Million, sell the Belmont and get a few Million more…
Then reinvest.. Especially if all this infrastructre spending really happens.