It won’t be business as usual for a not-for-profit skilled nursing facility in Yonkers, New York that is being purchased by a private ownership group for $22.7 million, or $189,200 per bed. The facility, built in 2001 by St. John’s Riverside Hospital and operated by the not-for-profit Riverside Health Care System, sits on a hill overlooking the Hudson River. For years, it solely relied on patients discharged from St. John’s, and its occupancy fell from 96% in 2012 to 93% in October 2014.
The new owners, called L&A Operations and who operate Sprain Brook Manor Rehab in nearby Scarsdale, New York, plan to form new collaborations with other health care service providers in the area in addition to the one with St. John’s and renovate the building, which should bring occupancy up to 97%. To cut down on costs, the group will save about $1 million by outsourcing services like therapy, dietary and laundry, and another $2.35 million in annual employee fringe benefit costs. Another big change is the termination of 226 union employee contracts, which will be renegotiated once the new owners assume operations, expected to be in early July.
