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Reeders, Tandem pen sales agreement

June 06, 2006

BOONSBORO - Reeders, a skilled-nursing care provider in Boonsboro since 1971, entered into a sale agreement on May 22 with Tandem Health Care, a Florida-based, for-profit corporation that manages more than 80 nursing homes and long-term health care centers throughout six states.

Since 2000, Reeders had operated under the management of Asbury Communities Inc., a not-for-profit senior living provider in Gaithersburg, Md.

The sale of the community to Tandem Health Care allows Reeders to join a larger company specializing in providing skilled nursing care, according to a prepared release.

The release says Reeders will benefit from:

  • Increased resources, operating efficiencies and advancement opportunities gained from a large system specializing in skilled nursing care.

  • Lower overhead costs at a time when changes to government reimbursement programs present risks to smaller providers in meeting financial goals.

  • Greater stability for residents and employees during a time of new regulatory changes.

  • The ability of a for-profit to generate investment income from venture capital funds, stock or other investors.

  • The opportunity to pay off Reeders existing debt.


"The sale benefits Reeders, Tandem Health Care and Asbury Communities," Ed Thomas, president and CEO of Asbury Communities Inc., said in the release. "It will ensure ongoing successful operations at Reeders, which ultimately benefits the residents and employees."

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In addition to ensuring continued skilled nursing care from one of the region's leading providers, the sale to Tandem provides additional revenue for Boonsboro, Washington County and the state of Maryland through property and other taxes, the release says. As a not-for-profit, Reeders does not currently pay property taxes.

Reeders was established in 1971, through a bequest to the Baltimore-Washington Conference of the United Methodist Church, to form a care center open to all faiths.

The community provides care for seniors in a skilled nursing facility with comprehensive nursing care, rehabilitation, and specialized dementia care, as well as respite care and hospice services.

Reeders was acquired by Asbury in 2000 at a time when the community faced a debt of nearly $6 million and a heavy emphasis on Medicaid reimbursement.

"As a result of Asbury's management support, and the hard work of its employees, Reeders has made significant positive strides," Thomas said. "Reeders has reduced its debt by more than 25 percent, increased private pay admissions, shown continual improvement in annual inspections, and increased occupancy levels."

Reeders was recently honored with a 2005 Maryland Performance Excellence Silver Award for achievements in quality care.

Tandem Health Care is a U.S. company offering long-term health care, including assisted living, skilled nursing, and independent living services, to residents of its facilities. The company also provides rehabilitation, diagnostic imaging, hospice, and Alzheimer's care, as well as short-term transitional care programs for patients needing complex medical treatment.

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