Diakon sells four senior living communities
Diakon Lutheran Social Ministries (Wednesday December 8, 2021)
After careful deliberation, Diakon Lutheran Social Ministries has made the difficult decision to sell four of its eight senior living communities.
The decision was made to facilitate a broader senior living reinvestment and capital allocation plan focused on reducing the organization’s reliance on government reimbursement while investing greater resources in independent living expansions and building a more contemporary continuum of care in Diakon’s remaining markets.
Significant investments are already planned or being made at Diakon’s Luther Crest community in Allentown, Pennsylvania and Cumberland Crossings community in Carlisle, Pennsylvania with other remaining senior living communities in Lewisburg and Topton, Pennsylvania.
Ownership and operations of the four communities in Pennsylvania and Maryland have been transferred to various affiliates of Lion Healthcare Management, a New Jersey-based privately-owned company with significant senior living industry presence in the Mid-Atlantic region and various other parts of the United States with a track record of investing in communities for the long term.
The communities have been sold effective Dec.1, 2021 unless otherwise indicated and include:
- Frey Village, Middletown, Pennsylvania
- Manatawny Manor, Pottstown, Pennsylvania
- Ohesson Manor, Lewistown, Pennsylvania
- Diakon Senior Living – Hagerstown - Ravenwood and Robinwood campuses, Hagerstown, Maryland (sale to be completed following required regulatory review)
“In selecting a buyer, Diakon was seeking an organization with sufficient resources to provide quality resident care, sustain and enhance the community impact that Diakon has had in the affected markets, and employ all existing staff members,” says Scott Habecker, Diakon President/CEO.
While terms of the transaction are not being disclosed, all proceeds of the transaction will be used by Diakon Lutheran Social Ministries to reduce existing debt.
Following the sale, Diakon Lutheran Social Ministries will continue to operate their remaining four Continuing Care Retirement Communities in Pennsylvania that, in the aggregate, include more than 600 independent living accommodations, 200 personal care apartments, and 400 skilled nursing beds.