FOR IMMEDIATE RELEASE
July 23, 2014
Contact:  Scott Salotto (845) 638-5645

Summit Park Hospital and Nursing Care Center Purchase Sale Agreement (PSA) at a Glance

NEW CITY, NY  --  Rockland County and the Rockland County Health Facilities Corporation (RCHFC) last week finalized an agreement to transfer ownership of Summit Park Hospital and Nursing Care Center to the Summit Park Acquisition Group.  The County created a Local Development Corporation or LDC to sell Summit Park in 2013.  Using an LDC is seen as a more efficient way to sell a government-run hospital.

The Purchaser

Shalom Braunstein as Manager for Sympaticare LLC, Sympaticare Health LLC and Summit Park Acquisition Group, LLC.

The Deal

Assignment of a 99-year lease with an option to purchase all the real and pertinent personal property. Conditions Where Is and As Is. Building A and contiguous portion of Building E with encumbrances and easements to be further delineated in a subsequent Rights and Easement Agreement.

Acquisition Price

$36-million. ($24-million for the nursing care center and $12-million for the hospital [Long-Term Acute Care Hospital/LTACH] and remaining real property.)  The deal includes a deposit of $3-million.

Approval Process

Sale subject to New York State Department of Health Certificate of Need (CON) approval. Purchaser has already applied for the nursing care center CON and is working on the hospital CON (which, in any event, must be filed no later than 30-days after PSA). Purchaser must keep County/Operator and LDC apprised of progress and must give at least 70 days notice to LDC to terminate county operations and complete transfer to purchaser.

Closing Dates

Target closing date for the nursing care center is within 60-days of CON approval.  Target closing date for the hospital is 30-days after LTACH CON approval.

Conditions to Close

CON approval for the nursing care center and hospital (will be separate), approval for transfer of Medicare and Medicaid provider numbers, resolution of all litigation (reasonably satisfactory to purchaser's lender); zoning approvals from Town of Ramapo, and payment of acquisition price for each facility.

The People

All residents shall continue to be residents and none will be transferred without their written consent. All employees will be considered for continuing employment.

County Agreements

Consultancy--Concurrent with PSA signing, Purchaser will become Consultant to the nursing care center and hospital (according to terms in separate Consulting Agreements for each facility).

Facilities Transition Agreement--Concurrent with PSA signing, the separate agreement for each facility outlines operational relationship between County and Purchaser during transition period from PSA signing to closing for transfer of ownership and operational responsibility.

What the County Stands To Make On the Deal
(all figures are estimated) 

$36-million: final sale price
-$12-million in outstanding bonds
-$8-million in legacy costs (including accrued leave payable)
-$2-million in closing costs (including broker, legal fees)
-$4-million in relocation costs for existing County departments (Medical Examiner, MIS, DGS, clinics)

Rockland County will earn an estimated $10-million after all legacy costs, legal bills, fees and relocation costs are paid.