BRIDGEPORT,
Monday, May 1, 2006, 2:00 p.m.
In what could become a model for healthcare providers in the United
States, the Diocese of Bridgeport announced today a bold partnership
with a major healthcare corporation which will ensure that the
three Diocesan nursing homes will remain open and expand while
retaining their proud Catholic identity and mission.
The Diocese
has entered into a contractual agreement with Harborside Healthcare,
one of the most respected nursing and long-term care companies
in the United States, to operate its three nursing homes: St.
Joseph's Manor in Trumbull (founded in 1960), Pope
John Paul II Center for Health Care in Danbury (1984),
and St. Camillus Health Center in Stamford (1988).
The homes
employ 900 people, and have a total of 562 beds.
Ongoing
Catholic Identity and Mission
The agreement
is a ground lease, whereby the Diocese of Bridgeport continues
to own the real property but sells the existing buildings and
facilities to Harborside Healthcare, which will assume responsibility
for the operation and management of the homes.
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Central to
the partnership is a unique contractual agreement that the homes
retain their existing Catholic identity and mission. The Diocese
will remain responsible for all aspects of pastoral care. These
homes will remain Catholic, and the pastoral services our residents
have come to expect and love will continue, including, for example,
Catholic chapels, daily Mass, dedicated Chaplains, and adherence
to the ethical and moral teachings of the Catholic Church.
Additional
details on the agreement are included below,
in the form of answers to questions.
"The Diocese
has a proud, 40-year history as a Catholic healthcare provider,"
says Bishop William E. Lori. "We decided to seek a new
partner so that our homes would remain open and grow, as well
as retain their Catholic identity and mission. This is what the
Church does, and does well.
"Harborside
Healthcare agrees with us," Bishop Lori continues. "They singled
out the Catholic identity and mission of our three homes as positive
features that would fit well with their own institutional mission.
They concur that pastoral services are integral to the quality
of life and care of our residents, who seek comfort, direction,
and peace from their faith."
Strategic
Alliance
Bishop Lori
announced the partnership in a press conference today at the Catholic
Center in Bridgeport. He was joined by the Chairman and Chief
Executive Officer of Harborside Healthcare, Damian N. Dell'Anno.
"We are very
proud to form this strategic alliance with the Bridgeport Diocese,"
Dell'Anno says. "Harborside's strategy is to seek out high-quality
operations and use our systematic approach to healthcare and our
ability to make strategic investments to better serve the healthcare
needs of the community. We are excited about the opportunity to
expand our operations in Fairfield County."
Presently,
Harborside Healthcare operates two facilities in Danbury, Glen
Hill and Glen Crest.
"Harborside
Glen Hill has an excellent reputation for care in the community,
and recently received the highly coveted AHCA/NCAL National Quality
Award, one of only 10 facilities nationwide to receive this honor,"
Dell'Anno adds. "We are pleased to merge our expertise in long-term
healthcare with the Diocese's approach to spiritual care."
Three
Criteria
Today's announcement
comes eight months after the Diocese announced its intentions
to seek a partner to address the long-term needs of the three
nursing homes. As a small sponsor of health care with limited
financial resources, the Diocese has had to support the three
homes over many years. The homes have also posted losses on an
operating basis. The current reimbursement environment in the
State of Connecticut has only made the problems worse.
The agreement
with Harborside Healthcare was reached following a comprehensive
process which began last September.
"The Diocese
was approached by several providers," says Joseph Lupica,
President of Stroudwater Capital, a well-regarded national health
care advisory firm retained by the Diocese to identify appropriate
potential sponsors. "We carefully considered all, mindful of our
three goals: a commitment to keeping the three homes open and
investing in their future; exercising our responsibility as good
stewards of Diocesan resources; and the continuance of the Catholic
identity and culture of the three homes.
"Of all the
entities which expressed interest in our homes, only Harborside
Healthcare met all three criteria," Lupica continues. "The deciding
factor was Harborside Healthcare's contractual commitment to ensure
that our homes remain Catholic and under the pastoral control
of our local Diocese and its Bishop."
The
Right Way Forward
Bishop Lori's
decision was reached with the advice, assistance, encouragement,
and approval of both clergy and laity. He worked closely with
the Administrators and Members and the Board of Directors of each
home; the Bridgeport Diocesan Health Care Corporation; the Priest
Consultors; and the Diocesan Finance Council.
"This decision
is the way forward," Bishop Lori concludes. "We believe this agreement,
which is in many ways groundbreaking in the healthcare industry,
is the best one for our homes. We are confident that Harborside
Healthcare - in accordance with the binding terms of our agreement
- can help us continue to provide the care our residents appreciate
and deserve. We are confident they have the financial strength
necessary for the task. And we are confident that Harborside Healthcare
has embraced fully our commitment to supporting authentically
Catholic healthcare."
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PARTNERS
IN CARE
How
the Diocese of Bridgeport plans to continue its Catholic healthcare
ministry in Fairfield County
with a new partner, Harborside Healthcare
Answers
to Questions
Who
is Harborside Healthcare?
Harborside
Healthcare is one of the most respected nursing and long-term
care companies in the United States, offering a full range of
quality programs and services to meet the critical needs of
residents and their families.
Harborside
Healthcare's goal is "to deliver the best quality care for its
residents and patients in a caring, comfortable environment.
Whether providing superior care for our long-term residents
or helping to rehabilitate those who need our help on a short-term
basis, we provide assurance for family members that their loved
ones are in good hands."
Headquartered
in Boston, Harborside
Healthcare operates 53 facilities serving more than
6,700 people in nine states, including seven facilities in Connecticut.
A privately-held company, Harborside Healthcare employs more
than 8,000 people.
What
is the agreement between the Diocese of Bridgeport and Harborside
Healthcare?
The agreement
is a ground lease, whereby the Diocese of Bridgeport continues
to own the real property but sells the existing buildings and
facilities to Harborside Healthcare, which will assume responsibility
for the operation and management of our three nursing homes:
St. Joseph's Manor, St. Camillus Health Center, and
Pope John Paul II Center for Health Care.
The Diocese
and Harborside Healthcare carefully developed this agreement
to enable our homes to retain their Catholic identity and mission.
In a unique, binding legal agreement integral to the ground
lease, the Diocese will remain responsible for all aspects of
pastoral care. These homes will remain Catholic, and the pastoral
services our residents have come to expect and love will continue,
including, for example, Catholic chapels, daily Mass, dedicated
Chaplains, and adherence to the ethical and moral teachings
of the Catholic Church.
Why
is it so important that our homes remain Catholic?
The Diocese
has a proud, 40-year history as a Catholic healthcare provider.
We decided to seek a new partner so that our homes would remain
open and grow, as well as retain their Catholic identity and
mission. This is what the Church does, and does well.
Harborside
Healthcare agrees with us. They singled out the Catholic identity
and mission of our three homes as positive features that would
fit well with their own institutional mission. They concur that
pastoral services are integral to the quality of life and care
of our residents, who seek comfort, direction, and peace from
their faith.
What
happens if Harborside Healthcare tries to change this agreement
on pastoral services?
They cannot.
The terms of our agreement are legally binding and not subject
to change without agreement by the Diocese, whether with Harborside
Healthcare or a future provider.
What
is Harborside Healthcare's reputation in the healthcare field?
Excellent.
Over the years, many of Harborside Healthcare's facilities have
received the prestigious National Quality Award from the American
Health Care Association.
In 2002,
Harborside Healthcare was one of the first companies in the
industry to adopt an unprecedented quality initiative in which
the company and its employees pledged to follow a formal code
of conduct and ethical management practices. Called "Quality
First: A Pledge to Improve Quality through Accountability, Compassion,
and Leadership," the initiative was one of the first of its
kind in the healthcare industry.
Nine out
of ten of residents' family members rate Harborside Healthcare's
level of care and commitment as excellent or good, and say they
would look to Harborside Healthcare again if a loved one needed
care.
Why
did the Diocese choose Harborside Healthcare as a partner?
Following
the public announcement in September 2005, the Diocese was approached
by several providers. We carefully considered all, mindful of
our three goals: a commitment to keeping the three homes open
and investing in their future; exercising our responsibility
as good stewards of Diocesan resources; and the continuance
of the Catholic identity and culture of the three homes.
Of all the
entities which expressed interest in our homes, only Harborside
Healthcare met all three criteria. The deciding factor was Harborside
Healthcare's contractual commitment to ensure that our homes
remain Catholic and under the pastoral control of our local
Diocese and its Bishop.
Why
did we decide to take this action?
Our three
homes have an outstanding reputation for high-quality care in
a Catholic environment. We are justifiably proud of our employees
and the miracles they work every day. But over the years, challenges
have grown. As a small sponsor of health care with limited financial
resources, the Diocese of Bridgeport has struggled to support
these homes.
The Connecticut
State Legislature forced our hand in this matter. For many years,
the reimbursement level from the State has lagged behind the
cost of patient care on a day-to-day basis. This resulted in
a large gap that the Diocese has endeavored to fill in order
to deliver a superior level of healthcare to our residents.
Unfortunately, we simply do not have enough capital resources
to keep up with these and other demands in the long-term.
Are
our homes going to close?
No! Harborside
Healthcare has committed to investing capital resources in our
three homes so that their proud tradition of care can not only
continue, but expand. In the past few years, 18 nursing homes
have closed in Connecticut. Ours will not. We are doing everything
in our power to secure a bright future for our homes, and the
continuance of their Catholic identity and mission.
Will
employees lose their jobs?
Harborside
Healthcare is impressed by the quality of care at our homes
and the obvious dedication of our employees to compassionate
care. Harborside Healthcare intends to offer employment to employees
in good standing.
Will
the Religious Sisters be allowed to continue their ministry?
All of the
Sisters have been invited to stay by Bishop Lori and by Harborside
Healthcare. Their witness to the Lord and their spirit of service
greatly enhance our homes.
Will
the homes keep their names?
Yes. The
homes will retain their names and identity, and still be known
as St. Joseph's Manor, St. Camillus Health Center, and Pope
John Paul II Center for Health Care.
What
happens next? Will I see changes immediately?
You can
expect the same high quality of healthcare, Catholic services,
and compassion from our dedicated employees and volunteers.
Over the next month you will have the chance to meet representatives
from Harborside Healthcare, who will keep you informed on the
transition.
Did
the Bishop consult others in reaching this decision?
Yes. Bishop
Lori has made it his job to work closely with the clergy and
the laity, seeking professional advice on matters of great importance,
and this is no exception. He worked closely with three groups:
the College of Consultors (12 priests who advise the Bishop
on matters of great importance); the Diocesan Finance Council
(professional lay men and women and members of the clergy who
advise the Bishop on the financial stewardship of the Diocese);
Board members of each home; and the Bridgeport Diocesan Health
Care Corporation (a board of priests, women religious, and lay
people who oversee the operation of the three homes).
The Diocese
also retained Stroudwater Capital, a well-regarded national
health care advisory firm led by Joe Lupica, a former parishioner
of our Diocese who understands our needs, to identify appropriate
potential sponsors consistent with the objectives of our Diocesan
ministry.
What
is the price Harborside Healthcare is paying for the privilege
of operating the homes?
Under the
terms of the agreement, the sale price is not disclosed. However,
the amount exceeds the average price-per-bed paid in comparable
transactions in Connecticut, and also obligates Harborside Healthcare
to substantial covenants to allow the Diocese to continue its
control over key pastoral matters.
All in all,
the agreement constitutes a powerful and responsible exercise
of stewardship on the Diocese's part. The proceeds of the agreement
will enable the Diocese to pay off the outstanding debt of all
three homes, including pension, insurance, and other obligations
to the homes' past and present employees; and leave a sum as
a fund to support the pastoral care at each home and other Diocesan
ministries to the elderly and underserved residents.
Does
this agreement have anything to do with the abuse settlements?
No. Abuse
settlements were funded through insurance and the sale of surplus
land owned by the Diocese. The agreement with Harborside Healthcare
is not in any way connected to funding settlements, but was
instead the result of an independent process to find the best
way for the Diocese to sustain and enhance its ministry to Catholic
healthcare for the elderly into the future.
Will
the Boards and Foundations of each home remain?
Yes. Under
the terms of the agreement, the Board of each home will remain
and work closely with Bishop Lori and Harborside Healthcare
to oversee the ongoing Catholic pastoral services of the homes.
The current
Foundations will also remain and continue to play an important
role. Since the homes will now enjoy the benefit of having their
general capital needs met by Harborside Healthcare, the Foundations
will have the freedom to redirect their efforts towards assisting
the Diocese in supporting the pastoral services of the residents.
How
can I find out more information?
We are committed
to open communication, and will make every effort to keep you
informed during this transition. If you have other questions
or concerns, we would like to hear from you. You may contact
our Director of Communications, Dr. Joseph McAleer, at (203)
416-1461. Harborside Healthcare's Vice President, Bradley Shiverick,
can be reached toll-free at (877) 477-4742.
In addition,
the company's website has a host of good information: www.HarborsideHealthcare.com.
Thank you
for your understanding and patience as we welcome Harborside
Healthcare as our new partner in sustaining and enhancing the
proud legacy of Catholic healthcare for the elderly in Fairfield
County.
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