Lutherville-based Mid-Atlantic Health Care, LLC closed last week on a $39 million deal to add a large skilled nursing and rehab facility in Pennsylvania to its rapidly expanding holdings.
Mid-Atlantic Health Care, founded in 2003, owns and operates 16 post-acute care facilities in Maryland, Delaware and Pennsylvania. The firm has specialized in acquisitions of facilities sold by local governments and non-profits and has financing to acquire another five to 10 in the next two years, CEO Scott Rifkin said.
The new property in Royersford, Pa., includes the 467-bed Parkhouse skilled nursing and rehabilitation center, the 15-unit Montgomery Meadows independent living center and Riverview adult day center.
Mid-Atlantic Health Care is planning upgrades, including renovation of the rehabilitation gym, Rifkin said. The company has kept on the facility's approximately 3,000 employees.
Pennsylvania's Montgomery County owned and operated Parkhouse for almost 80 years, but had been losing $2 million annually on operations and could not afford renovations, county spokesman Frank Custer said. County commissioners put the 288-acre parcel up for sale last year and approved the deal last week.
The property sold for $41 million, but Montgomery County paid $2 million to buy back about 70 acres after some expressed opposition to potential development of the land, which has been used as a park. Mid-Atlantic, unanimously selected from a dozen bidders, paid $28.6 million, after deductions for items such as sale costs and accrued employee benefits, Custer said.