Local doctors set to buy Pardee Care Center

Pardee Hospital is prepared to sell its long-term nursing and rehabilitation center to a group made up of local doctors, investors and an Ohio-based retirement community company.

Pardee's board of directors met in special session on Tuesday morning and approved a contract with Hendersonville Physicians and Associates for the purchase of the Pardee Care Center.

The group offered $8.45 million for the 130-bed facility on the campus of Blue Ridge Community College. The group also committed to $1 million in capital improvements.

Hendersonville Physicians and Associates includes Dr. Larry J. Russell, Dr. Amal Das, Dr. Steven Lackey, Dr. Gail Clary and Dr. Lateef Abumoussa. It also includes local investors, Fletcher-based Ardent Health and Rehabilitation and Ohio-based Sprenger Retirement Centers.

Pardee took into account how the buyer would continue the center's quality care, protect the employment of Care Center associates and work with community agencies such as Hospice and the Pavilion.

Care Center associates employed on the day of the close will continue receiving the same salary and seniority, Pardee CEO Kris Hoce said. The center has 167 associates. Hoce described the benefits package as comparable to the package offered by Pardee.

"I think both parties have worked real hard to ensure that the staff is well taken care of in terms of recognizing their tenure with our company, recognizing their rate of pay," said Mike DeLoach, vice president and co-owner of Ardent. "We worked really hard to make sure the resident care is continued. We've agreed upon some staffing requirements ... to make sure we continue the quality of care that they've done."

Pardee cannot recruit employees from the Care Center once the sale goes through. But employees who choose to leave can return to the hospital within six months and retain their seniority.

The contract also requires the buyer continue the Care Center's relationship with community organizations such as Four Seasons Hospice and Palliative Care. Hospice representatives sat in on interviews with four potential buyers named as finalists.

"Four Seasons Hospice & Palliative Care supports the hospital's decision in favor of the sale of Pardee Care Center to the Physician's Group," said Chris Comeaux, president and CEO of Hospice. "We have worked with many of the people in this partnership in the past and look forward to a continued relationship."

The sale is not final.

The Henderson County Board of Commissioners must approve the contract since the county owns the real estate. Commissioners should consider it today.

A 10-day upset bid period will take place after commissioners sign off. Any upset bid must top $8.87 million.

"It's our hope an upset bid wouldn't change their course of action, but it's an option they have," DeLoach said.

Pardee's board also asked Hoce to continue negotiations with Hendersonville Physicians and Associates over employee-to-patient ratios and the capital commitment.

Some Pardee board members wanted the contract to have more teeth so the hospital could be sure the $1 million in upgrades would be made at the Care Center.

Pardee's board voted in October to sell the Care Center. The facility was projected to lose nearly $400,000 this year, but hospital officials say it would be more profitable if free from liability and regulatory issues that come with hospital ownership.

Hendersonville Physicians and Associates would lease the property to Hendersonville Health and Rehabilitation. The company is comprised of Ardent and Blue Sky Health Care, an entity of Sprenger.

Ardent operates Beystone Health and Rehabilitation in Fletcher, a 50-bed skilled nursing facility. It also operates Sanford Health and Rehabilitation, a 130-bed skilled nursing facility southwest of Raleigh.

Sprenger Retirement Centers has 10 retirement communities in northeast Ohio. The business has family ties to Ardent Health and Rehabilitation through Chris Sprenger, the president and co-owner of Ardent.

The role of top bidder traded off more than once between Georgia-based UHS Pruitt and Hendersonville Physicians and Associates. UHS Pruitt offered $8 million and committed to $750,000 in renovations and upgrades at the center.

Hendersonville Physicians and Associates once appeared out of the race, after a committee recommended Pardee negotiate with only UHS Pruitt. But the local doctors were kept in the running by the full Pardee board of directors in January.

The group became the front runner in March, as Pardee administrators conducted on-site visits and background checks on the potential buyers, considering survey and regulatory records.