The Diocese of Scranton Announces Letter of Intent with Allied Services for Sale of Little Flower Manor Campus and St. Luke’s Villa Campus

The Diocese of Scranton Announces Letter of Intent with Allied Services for Sale of Little Flower Manor Campus and St. Luke’s Villa Campus

SCRANTON, PA (MARCH 8, 2019) – The Diocese of Scranton announced today that it has received a non-binding letter of intent (LOI) for the sale of its long-term healthcare facilities in the city of Wilkes-Barre, Pennsylvania. The Diocese has entered into a due diligence agreement with Allied Services Integrated Health System, a locally-based, a regional not-for-profit health system with a 60-year tradition of providing quality health care and human services with compassion and empathy.

Assets included in the sale are:

  • Little Flower Manor – a 133-bed skilled nursing facility with 71 private rooms
  • St. Therese Residence – 60 units with access to the finest personal care services and amenities, as well as 15 units for patients requiring specialized memory impairment services
  • St. Luke’s Villa – a 50-bed skilled nursing unit, a 48-unit personal care facility and 31 independent living apartments

Across the two campuses, services include 24-hour nursing care and rehabilitation for those recovering from an illness, injury or surgery, personal care assistance, and independent living spaces. The Diocesan owned and operated facilities are non-profit, faith-based and mission-driven, and are the providers of choice in their service areas. Approximately 400 employees and volunteers care for the facilities’ 322 residents.

For several years, Diocesan leadership has been evaluating its long-term care facilities. Given continued shifts in the healthcare industry, the Diocese of Scranton faced a number of challenges including decreased reimbursement rates and heightened regulations.

“Healthcare – and long-term healthcare specifically – is increasingly becoming a sophisticated and complicated industry,” said the Most Reverend Joseph C. Bambera, D.D., J.C.L., Bishop of Scranton. “The Diocese of Scranton, like many other small, independent operators is not equipped to address evolving needs in this space. Our patients and residents deserve the highest quality of care, and the decision to sell these facilities was made with their best interests in mind.”

“This is a great day, for our community, for the Diocese of Scranton, for Allied Services Integrated Health System, and most importantly, for the patients and residents entrusted to us,” said William P. Conaboy, Esq., President & CEO of Allied Services Integrated Health System. “We are grateful for Bishop Bambera and to the Diocese leadership for choosing Allied Services to continue their mission. We stand ready to do what is best for our patients, residents, and employees and to continue the work of the Diocese of Scranton in providing the very highest quality of care.”

The Diocese has been highly selective and considered a number of buyers. Allied Services has committed to utilizing its best efforts to retain current staff, whose dedication has helped maintain strong quality ratings and occupancy rates in recent years. Allied Services has also committed to preserving religious articles and artifacts.

The sale of these facilities will allow the Diocese of Scranton to continue its commitment to serving the people of this region through core services such as food pantries, community outreach, and emergency shelter programs. While the Diocese originally chose to explore selling these two facilities because of the evolving healthcare landscape, it has determined that proceeds from this sale may assist with funding the recently announced Independent Survivors Compensation Program.

“Our goal is to find a buyer better equipped to address evolving needs in the healthcare space, so that we can provide financial compensation to survivors of child sexual abuse, and can continue to focus on serving the neediest in our midst through Catholic Social Services of the Diocese of Scranton and new and different ways of supporting our elderly population,” said Bishop Bambera.

“On behalf of the Board, I would like to thank all of those who worked so diligently to make this happen, while welcoming the 400 employees and volunteers from the Diocese to Allied Services,” said Dr. Douglas M. Boyle, DBA, CPA, Board Chair, Allied Services Foundation. “I also wish to reaffirm our enthusiasm and continued commitment to providing the highest level of quality care to all of our patients and residences.”

The due diligence process requires 90 days during which Allied Services will review the assets from a financial, operational and compliance standpoint. If Allied Services chooses to move forward with the sale, both parties will enter into an approval process before the sale is final.

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FOR MORE INFORMATION CONTACT:

Eric Deabill James Brogna

Secretary for Communications Vice President, Corporate Advancement & Communications

Diocese of Scranton Allied Services Integrated Health System

EDeabill@dioceseofscranton.org JBrogn@allied-services.org

(570) 207-2229 (570) 348-1347

Cell: (570) 237-6508 Cell: (570) 351-8763

DIOCESE OF SCRANTON

Founded in 1868, the Diocese of Scranton serves an 11-county region including Bradford, Lackawanna, Luzerne, Lycoming, Monroe, Pike, Sullivan, Susquehanna, Tioga, Wayne, and Wyoming counties. The Catholic community of the Diocese of Scranton is called through Baptism to imitate the servant leadership of Jesus Christ. In union with our Holy Father, the Pope, we proclaim the Gospel faithfully, celebrate the sacraments joyfully, and boldly promote life, justice, and peace in northeastern and northcentral Pennsylvania. Bishop Joseph C. Bambera serves as the tenth Bishop of Scranton, appointed by Pope Benedict XVI, ordained and installed as bishop in 2010. The 118 parishes of the Diocese enjoy the membership of nearly 250,000 parishioners and more than 14,500 children from pre-school through high school attend our 20 schools.

ALLIED SERVICES INTEGRATED HEALTH SYSTEM

Allied Services Integrated Health System is the leading provider of health care and human services for people with disabilities, life-changing injuries and chronic illness in Northeastern and Central Pennsylvania. The organization was founded in 1958 in response to a community need for vocational services that honored the abilities and aspirations of individuals with disabilities. Today, Allied Services is a provider of diverse services that improve the quality of life for thousands of people. The not-for-profit organization touches the lives of 5,000 people every day. The continuum of care offered by Allied Services includes physical rehabilitation; skilled nursing; hospice and palliative care; home care; personal care; mental health services; vocational and developmental services; specialist education and pediatric services. Allied Services 3,500-plus employees and volunteers deliver care across a 23-county area, united by a common commitment to providing care with compassion and empathy that supports individuals in reaching their highest level of independence, potential, and quality of life.