Bourne Manor
Upward Trajectory: The Strategic “The strategic value these assets has and is critically relaunch on our tuned-up strategy.” Linda Manor Assisted Living
Integritus Healthcare has operated the fi ve buildings that comprise the Chakalos portfolio, including Charlene Manor, Linda Manor Extended Care Facility and Assisted Living, Hathaway Manor and Bourne Manor, since they were built—many in the late ‘80s to early ‘90s and Linda Manor Assisted Living in 2014. “We opened the fi ve properties after they were built by the developer and landlord—John Chakalos—who was our landlord for 30-plus years,” said Bill Jones, President and CEO of Integritus Healthcare. “We built those brands and had tremendous success in each of those markets.” But Integritus leadership knew, despite the organization thriving, that acting as operator and not owner of these properties was not advantageous to their growth trajectory. “The pressures on rental streams, as you might imagine, escalate every year; the reimbursement from Medicare and Medicaid
doesn't,” Jones explained. “And the license that one gets from the state and the federal government to operate in those environments has value. In this case, the landlord owned the licenses, so we always felt somewhat disadvantaged by that structure even though we had tremendous success over that 30-year period.” According to Jones, the relationship—the dynamic of owner versus operator—is similar to renting an apartment: “If you think of it as an apartment that you might rent to live in, it's never really yours, right? If you're renting it, you don't feel a sense of ownership and control over how that apartment is built to best suit your needs. It has somewhat of a transient context to it. The extent to which you make improvements to it over time—the bene fi t from those improvements don't extend to you if and when you might decide that apartment no longer meets your needs. That’s similar to the situation we were in.” Jones went on to say,
6
Powered by FlippingBook