Facing severe financial challenges, Doylestown Hospital announced this week it plans to sell its Pine Run Retirement Community in Doylestown Township.
The 517-bed community is a continuing care facility that offers independent living, personal care, nursing and rehabilitation services on a sprawling 43-acre property along Ferry Road. Pine Run also includes Lakeview, a separate memory care campus, located on seven acres in Doylestown Township.
According to reports of a recent call with investors, Doylestown Health has seen its financial reserves drop by $45 million, or 37 percent, since 2019. The healthcare system is reportedly working with banks to relax their loan requirements stipulating it have a certain amount of cash reserves.
One financial news source reported Doylestown Health had an operating loss of almost $25 million for the 12-month period ending in September.
The potential sale of the retirement community comes, officials said, as the hospital evaluates its financial needs and works to rebound from “extraordinary and unprecedented financial hardship” brought on by the COVID-19 pandemic.
The nonprofit hospital said it has received non-binding “inquiries of interest” for the retirement community that it’s evaluating.
“The finalist(s) will have a best in class operating track record in the senior living industry as well as the financial resources to invest in the Pine Run Retirement Community to maintain and enhance facilities, quality, care and unique culture,” the hospital said in a statement.
“Any decision will be made thoughtfully and with the best interest of Pine Run, its Associates, Villagers and residents in mind,” the statement said.
Pine Run earned its second consecutive Best Nursing Home status in 2023 from U.S. News & World Report, by achieving the report’s highest possible rating.
The hospital has invested tens of millions of dollars over the past several years at Pine Run, building a new clubhouse with a pool and large outdoor dining area overlooking the center’s pond. A new community center was also built.
In 2018, Doylestown Health launched its first-ever comprehensive capital campaign with a goal of $100M. In 2021, it increased the ambitious goal by $25M. The One Vision fundraising effort’s end coincides with the centennial celebration of the first Doylestown Hospital, founded by the all-women Village Improvement Association.
Some of the campaign’s efforts have been used for the following:
• The opening of the state-of-the-art Cardiovascular and Critical Care Pavilion, home to the Woodall Center for Heart and Vascular Care and the Clark Center for Critical Care Medicine.
• The Community Center, a hub for gracious living, wellness and fellowship on the campus of Pine Run Retirement Community
• The Ambulatory Center, home to the newly dedicated Clark Outpatient Rehabilitation Center as well as pre-admission testing and other outpatient services.
• Expansion of the Doylestown Hospital Surgical Suite now underway.
• Endowment funds providing opportunities for restricted and unrestricted giving.
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