Leaders of the Good Samaritan Society will be on the ground in Arizona, New Mexico and Texas this week, beginning the transition of another dozen long-term care facilities to new operators as the nonprofit continues scaling back its national footprint.
Good Sam is about 18 months into an effort to bring its core operations back into a centralized stretch of the Midwest and Mountain West. Late last year, CEO Nate Schema described the reorganization — a reduction of 30% — as an effort to recommit resources and renew focus on a smaller, more cohesive group of facilities.
Although the slimdown is running behind schedule, Schema told McKnight’s Long-Term Care News Thursday that “it feels like we’re nearing that fourth quarter.”
“Over the next three months here, we’re going to be really transitioning another 15% to 20% of our locations, and we have some planned announcements,” Schema said, noting that the provider had already dispatched about 50% of its assets marked for sale.
Much of the latest share will be represented by a 10-facility deal with OPCO Skilled Management, which already operates some 50 skilled nursing facilities, including 18 in Arizona, Schema said. Another three facilities, including two campuses in Denton, TX, are set to be purchased by PureHealth, which has five other operations, according to its website.
All of these deals are expected to close in 60 to 90 days, while Schema said Good Sam would also finalize the sale of its properties in Arkansas by month’s end.
The company’s stated goal to focus on facilities in Minnesota, North Dakota, South Dakota, Iowa, Nebraska, Kansas and Colorado remains the same, Schema said.
As of Friday, it had already fully exited Idaho, Indiana, Montana, Ohio, Washington, West Virginia and Wisconsin, a spokeswoman said. Facilities in some of those states were already under contract with Cascadia Healthcare when Good Sam announced its downsizing in January 2023.
Keeping desired balance, patiently
The organization had previously said it hopes to maintain its 70/30 balance between skilled nursing and senior living facilities. So far, Good Sam has sold 1,201 SNF beds and 902 senior living units; it has firm plans to transition another 883 SNF beds and 1,186 senior living units.
Schema acknowledges that the deals have taken “arguably longer” than other transactions might have. But Good Sam is continuing to build in time to ease staff and families through the process, allowing them the opportunity to meet new leaders, ask questions and make sure technology and other operational necessities transition without glitches.
The company is working almost exclusively with for-profit buyers, as that’s what the market has presented, Schema said.
“We’ve been so intentional about partnering with quality providers. We really want to ensure and understand what their plans are for these locations for the future,” Schema said. “We know that oftentimes, even though we leave a community, they’re known as a Good Samaritan community for the indefinite future, so we’re focusing on really seamless and smooth transitions. These are not just transactions to us.”
The idea that the facilities stay in business is especially important in rural communities that Good Sam is leaving, Schema acknowledged. Seventy percent of the organization’s clients are in rural locations, and the sales have been split between rural and non-rural locales.
Reinvesting, still seeking growth
The proceeds are already going back into Good Sam’s new core.
In February, the organization announced it would build a new, $200 million comprehensive senior living and healthcare campus in South Dakota, complete with indoor walkways and up to 180-skilled beds. Groundbreaking for Founder’s Crossing is set for September.
Good Sam also acquired a closing monastery adjacent to its St. Martin’s campus in Rapid City, SD. It will eventually renovate and convert the building into assisted living units.
In addition, the company is building an onsite dialysis den at a skilled nursing facility in Bismarck, ND, which will be the first in that state when it opens in early 2025.
And Schema said he and other leaders remain open to growth, whether it’s through new facilities in existing or contiguous geographic locations, campus expansions or programmatic innovation.
Sanford’s virtual health campus is also set to break ground this year, eventually extending telehealth capabilities and support for seniors in their homes and in Good Sam facilities.
Wisconsin also could come back into play again as Good Sam’s parent organization, Sanford Health, pursues a merger with Marshfield Clinic. Marshfield does not have a skilled or senior living component beyond home health, but Schema said the merger talks could include consideration for rural seniors’ needs in the Marshfield market.
With or without a merger, rightsizing doesn’t equate with becoming a static entity. Schema said he remains open to acquisitions, too.
“Our organization sees a strategic opportunity and responsibility to continue to look and explore different ways we can partner with others within this contiguous footprint,” he said. “We will listen and have a conversation with anyone that may be interested.”
