SCRANTON — The Diocese of Scranton announced today that it has received a non-binding letter of intent (LOI) for the sale of its long-term healthcare facilities in the city of Wilkes-Barre, Pennsylvania. The Diocese has entered into a due diligence agreement with Allied Services Integrated Health System, a locally-based, regional not-for-profit health system with a 60-year tradition of providing quality health care and human services with compassion and empathy.

Assets included in the sale are:

• Little Flower Manor – a 133-bed skilled nursing facility with 71 private rooms

• St. Therese Residence – 60 units with access to the finest personal care services and amenities, as well as 15 units for patients requiring specialized memory impairment services

• St. Luke’s Villa – a 50-bed skilled nursing unit, a 48-unit personal care facility and 31 independent living apartments

Across the two campuses, services include 24-hour nursing care and rehabilitation for those recovering from an illness, injury or surgery, personal care assistance and independent living spaces. The Diocesan owned and operated facilities are non-profit, faith-based and mission-driven, and are the providers of choice in their service areas. Approximately 400 employees and volunteers care for the facilities’ 322 residents.

For several years, Diocesan leadership has been evaluating its long-term care facilities. Given continued shifts in the healthcare industry, the Diocese of Scranton faced a number of challenges including decreased reimbursement rates and heightened regulations.

“Healthcare – and long-term healthcare specifically – is increasingly becoming a sophisticated and complicated industry,” said the Most Reverend Joseph C. Bambera, D.D., J.C.L., Bishop of Scranton. “The Diocese of Scranton, like many other small, independent operators is not equipped to address evolving needs in this space. Our patients and residents deserve the highest quality of care, and the decision to sell these facilities was made with their best interests in mind.”

“This is a great day, for our community, for the Diocese of Scranton, for Allied Services Integrated Health System, and most importantly, for the patients and residents entrusted to us,” said William P. Conaboy, Esq., President & CEO of Allied Services Integrated Health System. “We are grateful for Bishop Bambera and to the Diocese leadership for choosing Allied Services to continue their mission. We stand ready to do what is best for our patients, residents and employees and to continue the work of the Diocese of Scranton in providing the very highest quality of care.”

The Diocese has been highly selective and considered a number of buyers. Allied Services has committed to utilizing its best efforts to retain current staff, whose dedication has helped maintain strong quality ratings and occupancy rates in recent years. Allied Services has also committed to preserving religious articles and artifacts.

The sale of these facilities will allow the Diocese of Scranton to continue its commitment to serving the people of this region through core services such as food pantries, community outreach and emergency shelter programs. While the Diocese originally chose to explore selling these two facilities because of the evolving healthcare landscape, it has determined that proceeds from this sale may assist with funding the recently announced Independent Survivors Compensation Program.

“Our goal is to find a buyer better equipped to address evolving needs in the healthcare space, so that we can provide financial compensation to survivors of child sexual abuse, and can continue to focus on serving the neediest in our midst through Catholic Social Services of the Diocese of Scranton and new and different ways of supporting our elderly population,” said Bishop Bambera.

“On behalf of the Board, I would like to thank all of those who worked so diligently to make this happen, while welcoming the 400 employees and volunteers from the Diocese to Allied Services,” said Dr. Douglas M. Boyle, DBA, CPA, Board Chair, Allied Services Foundation. “I also wish to reaffirm our enthusiasm and continued commitment to providing the highest level of quality care to all of our patients and residences.”

The due diligence process requires 90 days during which Allied Services will review the assets from a financial, operational and compliance standpoint. If Allied Services chooses to move forward with the sale, both parties will enter into an approval process before the sale is final.