Doylestown (Pa.) Health is selling its Pine Run Retirement Community and related assets to Presbyterian Senior Living in an $80.6 million deal, The Philadelphia Business Journal reported July 19.
Elizabeth Seeber, the health system's CFO, said the sale will improve its liquidity position, according to the report. The deal is expected to close during the third quarter. Doylestown is anticipating to realize more than $35 million in net proceeds from the sale.
Doylestown is struggling with escalating labor costs and prolonged financial effects of COVID-19, the report said. The health system posted an $18.1 million operating loss during the first three quarters of 2023, which ended June 30. The health system posted an operating loss of $34.7 million in fiscal 2022. Pine Run, meanwhile, had operating losses of $3.86 million in fiscal 2021 and $4.9 million in fiscal 2022.