Asbury sells Wytheville campus
Wytheville office will be deeded to district
MARYVILLE, Tenn. - Asbury Inc. has accepted an offer to sell the Wytheville campus to a health-care company based in Roanoke, Va.
One of four locations of Asbury's retirement community network, Asbury Place at Wytheville will be sold to Smith/Packett Med-Com, officials announced in late February.
At press time, no date had been set for the transaction.
Bernie Bowman, Asbury CEO and president based in Maryville, Tenn., cited financial losses as a reason for the Board of Directors' decision. He also expressed concern for the future of the Wytheville campus and its 243 residents.
"Asbury Place at Wytheville has accumulated financial losses of more than $1.5 million over the last 15 years," Bowman said in a prepared statement. "When an unsolicited offer came to purchase Asbury Place, the board decided to sell the campus."
Bowman said that the other three Asbury campuses - in Maryville, Johnson City and Kingsport - had subsidized operational and capital expenses for the Wytheville campus. "Selling the property will restore the losses the Asbury corporation has accumulated over the years," he said.
Bowman emphasized that the Wytheville campus and its residents would benefit from the decision. Prior to Smith/Packett's offer, the Asbury leadership had considered reducing the Wytheville operation to improve its financial health, Bowman said.
"The silver lining is that Smith/Packett is committed to investing in and growing the independent and assisted-living services," said Bowman, referring to living options that are now offered along with nursing care in the preferred retirement communities. Smith/Packett will invest $500,000 in the Wytheville facility in the first year, according to the agreement.
"Given Asbury's overall financial status and all the competing needs within the organization, there is no way Asbury could even consider making such an investment," he added.
As part of the agreement, Smith/Packett will honor all current resident contracts. Residents will not be displaced as a result of the sale and will be kept informed as the transition takes place, as will employees, according to an Asbury press release.
In addition, Smith/Packett will deed the Wytheville District superintendent's office, located on the Asbury Place campus, to the Wytheville District, officials said.
In a March 3 letter to Asbury supporters, Bowman referred to comments made by the Rev. Charles Starks, Wytheville District superintendent.
In his e-mail to Wytheville clergy announcing the sale, Starks wrote, "Our number one concern in this matter must be that the residents have the very best care and environment for their long-term needs."
Bowman added, "We concur."
The remaining Asbury communities will also benefit from the decision, which should allow Asbury to develop the financial strength needed to reposition its facilities and services, Bowman said.
"All Asbury campuses have significant facility and program upgrade needs if future residents are to be well served," he said.
The Asbury retirement network is affiliated with Holston Conference, but is operated as an independent, not-for-profit corporation. Asbury does not receive funding from the Holston Conference budget.
Smith/Packett is a for-profit development firm that focuses on health-care facilities including long-term care. The 22-year-old company currently has ownership in more than 30 facilities valued at $200 million.
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