Dec 3, 2017 4 min read

After two tentative dates went by the wayside earlier this fall, Premier Healthcare Management LLC of Philadelphia Friday became the owner of Washington County Health Center.

The $25.35 million transaction was completed by electronic transfer from Premier to the county at 3:40 p.m., ending both a process that began just over a year ago and the county’s care of the indigent, dating to 1830.

Lisa Sofia, president and chief executive officer of Premier, said Friday, “New signs have been ordered, new logo, everything” for what is now known as Premier Washington Health Center.

The change to private ownership was first discussed at this time last year as the county’s contract with approximately 200 members of Service Employees International Union Healthcare PA was set to expire Dec. 31, 2016.

Some at the time viewed the commissioners’ mention of the sale of the 40-year-old facility as a bargaining chip in contract talks.

But as 2017 arrived, it became apparent the commissioners were prepared to end $9 million worth of subsidies that had been keeping the health center fiscally afloat since 2012.

After issuing a request for proposals, members of the board in June accepted a $29.6 million offer from Premier to purchase the 288-bed facility and approximately 19 acres in Arden, Chartiers Township, across from the county fairgrounds.

Friday’s actual sale price of $25,350,514 was slightly lower because of three factors, said Mark Stewart, the Harrisburg-based attorney the county hired to handle the sale.

The higher price in June included a projected value of accounts receivable that Premier was also buying.

The county, however, made a concerted effort to collect debts, in February hiring under a $30-an-hour contract, a former health center business office employee to work with accounts receivable.

“A buyer is not going to pay 100 cents on the dollar” on the amount of accounts receivable, Stewart said Friday.

The second factor, Stewart said, was a change in regulation on fire doors affecting all nursing homes in Pennsylvania in August that meant fire doors at the health center were no longer compliant.

The estimate to replace 40-some doors at the facility was $160,000.

The third factor was a recalculation of transfer taxes related to the sale that resulted in a $13,000 change. In Pennsylvania, both buyer and seller must pay the transfer tax, which is shared by the state, municipality and school district. The total transfer taxes were $444,221.

Stewart wrote in an email, “The agreement was written such that the county would remit the tax, but the purchase price would include the buyer’s share.”

Scott Fergus, Washington County director of administration, noted Friday the sale meant the health center and approximately 19 acres would no longer be tax-exempt, but would be returned to the tax rolls.

County officials, in formally accepting Premier’s offer, had mentioned Oct. 1 as a sale date. When it came and went without the transaction taking place, Oct. 20 was substituted.

When Oct. 20 arrived, the county transferred operation of the health center to Premier for $2.5 million, but Dec. 1 became the final date for the sale of the real estate.

Commission Vice Chairman Diana Irey Vaughan said in a news release the operational transition of the health center had gone “smoothly.”

What does the county plan to do with the $28.2 million deposited Friday?

Commission Chairman Larry Maggi said a committee has been formed to “study space feasibility” at the county complex between South Main and South Franklin streets.

“Everybody has outgrown their space. In the courts, there’s talk about us getting a new judge,” he said. “There are repairs and roofing that are needed on this over-100-year-old historic courthouse, and we’re doing studies on what needs to be done.”

Tim Kimmel, Washington County human services director for more than a decade who also became health center administrator in 2012, accepted a job offer from Premier that began Oct. 20.

Fergus temporarily has been handling Kimmel’s duties as human services director.

“We’ll be doing some reorganizing there,” Maggi said, noting that, without the health center as the central focus of the human services director, the county is geared toward someone who can combat the opioid epidemic and also tackle mental-health issues.