Public hearings concerning the proposed sale of two Monmouth County care centers are scheduled for August.
One care center is in Freehold Township and one care center is in Wall Township. After decades of operation by the county, both facilities will be sold by public auction as the county steps away from the healthcare industry.
“Pursuant to (state law), the next step in the process for the sale of the Geraldine L. Thompson Care Center (Wall Township) and the John L. Montgomery Care Center (Freehold Township) is for the county to hold two public hearings for each facility,” Monmouth County Freeholder John Curley said.
The first public hearing will be a joint hearing for both facilities and is scheduled for 5 p.m. Aug. 3 at the Monmouth County Hall of Records, 1 E. Main St., Freehold. The hearing will be held before state Superior Court Judge Patricia Del Bueno Cleary.
The second public hearing for the Geraldine L. Thompson Care Center is scheduled for 10 a.m. Aug. 17 at the Wall Township municipal building, 2700 Allaire Road, Wall Township. The second public hearing for the John L. Montgomery Care Center is scheduled for 2 p.m. Aug. 17 at the county agriculture building, 4000 Kozloski Road, Freehold Township.
In March, the Board of Freeholders voted to permit the county administration to move forward with the privatization of the care centers. The freeholders retained a real estate firm to assist in the sale of the county’s two nursing homes.
The freeholders hired Marcus and Millichap Real Estate Investment Services, Chicago, to guide the county through the process of privatizing and selling the Montgomery and Thompson care centers. Officials said the two care centers have been losing millions of dollars each year.
Freeholder Director Gary J. Rich Sr., Deputy Director Serena DiMaso, Freeholder Thomas Arnone and Curley voted in favor of the resolution to hire the real estate firm. Freeholder Lillian Burry voted against the resolution.
Officials said Marcus and Millichap has experience and expertise in the privatization of long-term care facilities.
The fee the county has negotiated with Marcus and Millichap will be 2 percent of the total gross purchase price for the sale of the facilities, according to the resolution.
“The privatization is emphasizing the care centers’ change from a public entity to the private world,” Arnone said.
The operations, he said, are being considered privatized and the lands are being considered for sale.
Marcus and Millichap will assist with the drafting of a Request for Proposal that will contain the details of the privatization of the two care centers.
Curley, who has pressed for the privatization of the care centers, said the issue is a crisis to the county.
“As a businessperson, I find it my responsibility to do what is right for the county. Health care is changing and we need to do what is responsible and we will make sure everything that people have mentioned in their comments to us will be in a sales agreement,” he said.
The county’s finances have been affected as the federal health care law draws money from Medicare, Medicaid and Social Security. Medicaid is the primary source of funding for both of the care centers, Curley said. Since 2007, the care centers have cost the county about $45 million, according to the freeholder. Arnone said the care centers’ employees will be kept informed during the privatization process and will be told how the changes will affect them.
The freeholders hired the legal firm of Archer and Greiner, P.C., to assist Marcus and Millichap during the process of privatizing the care centers. Archer and Greiner will be paid $275 per hour for legal representation related to the privatization of the care centers.
The Montgomery care center dates back to 1930 and the Thompson care center has been in operation since the mid-1920s. As of July, there were approximately 114 residents and 165 employees at the Montgomery care center, and about 97 residents and 154 employees at the Thompson care center.
Curley said a 30-acre parcel next to the Montgomery care center on Dutch Lane Road in Freehold Township will be sold in the future.
“The adjoining property to the Montgomery care center has been subdivided and will be sold at auction at some point,” he said, adding that the land consists of a former juvenile detention center and two additional parcels.