Health & Wellness
The Memorial Health leadership team, their Board of Trustees, and the Union County Commissioners have announced a new owner/operator for Memorial Gables has been selected in Foundations Health Solutions. The sale is expected to close by the end of September.
“Foundations Health Solutions is a leader in senior living solutions across Ohio, known for their wealth of expertise and commitment to excellence in senior care,” shares Chip Hubbs, Memorial Health President and CEO. “They are based in the Cleveland area and operate exclusively in Ohio, with more than 25 years of experience providing quality care to seniors.” In the announcement signed by Hubbs; Emily Wieringa, Memorial Health Board of Trustees Chair; and Steve Robinson, President of the Union County Commissioners; the group notes that Foundations Health Solutions owns 60 facilities with an average Centers for Medicare and Medicaid Services rating of four-stars.
Wieringa emphasizes, “We chose Foundations for their experience in the Ohio market, their history of maintaining high levels of quality, excellence in resident experience, a commitment to retaining employees who currently work at Memorial Gables, and their genuine desire to become part of the Union County community.”
The process to identify and select a buyer took nearly four months following the announcement to stakeholders in mid-March. Memorial Health CFO, Jeff Ehlers, led the process including the selection of Senwell Senior Investment Advisors out of Toledo to serve as Memorial’s broker. He shares, “Their significant experience in Ohio with both long-term care facility sales transactions and also the transfer of bed licenses proved helpful in the quest.” Senwell engaged more than 400 organizations nationally to offer the option of submitting a proposal to buy. A total of 61 organizations signed non-disclosure agreements, and ultimately 11 organizations made formal offers to purchase.
Simultaneously, Memorial Health worked with the Union County Commissioners to develop a scorecard by which all potential buyers would be graded. The scorecard was broken into six pillars, weighted from six to one. The higher the weighted value, the more important the category was to the scoring. The six pillars and their associated weighting included Operator (6), Quality Scoring (5), Employee Relations (4), Offer (3), Financial (2), and Demonstrated Ability to be a Community Partner (1).
“Of the 11 offers, Foundations had the highest score, and was impressive related to quality of care, employee relations, and resident/family reviews,” provides Hubbs. “Through this process, we were made aware that for some time, they have desired to expand into Union County.”
In the March announcement, the local health system acknowledged that “aging care communities across the country continue to face increased financial difficulties and Memorial Gables is no exception.”
Robinson adds, “We began the search for a new buyer because we believe someone whose expertise is in nursing home operations can bring economies of scale to improve our facility while ensuring the highest quality of care. Foundations will bring a new perspective and is a very positive next step for our residents, their families, and our team members.”
In the official statement, the trio of Hubbs, Wieringa, and Robinson stand “united in (their) enthusiastic support of this transition, recognizing it as a great outcome and very positive step forward for the future of Memorial Gables.”
