Freeholders Postpone Buttonwood Hospital Auction

Burlington County freeholders postponed the auction of Buttonwood Hospital one week to allow more time for the review of public comment on the proposed sale, and also to assess the qualifications and background of potential bidders.

The auction was reset for 2 p.m. Thursday, March 1, in the Burlington County freeholder conference room, 49 Rancocas Road, Mount Holly. The auction was originally scheduled for Friday, Feb. 24.

In addition, the board voted to move the second of the two hearings regarding the possible sale from the freeholder boardroom to Rancocas Valley Regional High School’s performing arts center, 520 Jacksonville Road, Mount Holly. The hearing will commence at 6 p.m. tonight (Feb. 14).

Freeholders began assessing the future of Buttonwood last year, commissioning a financial report, which determined the taxpayer subsidy of operating the facility would reach $4.5 million in 2012, and would continue to increase dramatically in the coming years, exceeding $5.2 million by 2016. 

“This board has a responsibility to ensure that quality of care is maintained,” said Freeholder Joseph Donnelly, “but we also have an obligation to taxpayers as a result of rising operating costs and decreases in Medicare and Medicaid reimbursements.”

He said the information being solicited from “prospective bidders not only provides us with their financial status, but also is intended to assist us in determining their ability to maintain the highest quality of care. The additional time between now and the auction will give staff and freeholders ample opportunity to evaluate these submissions.”

Donnelly noted once again the auction per se would not “consummate in a sale,” even if a qualifying high bid was received. Instead, he said, the board would take two to four weeks to evaluate the bid, revisit the bidder’s qualifications, digest public input, and assess relevant financial data, all before deciding whether to proceed with a sale.

“An auction is the only way to determine if the facility will bring a price that merits a sale,” he said, “and if for any reason freeholders do not wish to accept a bid, we are not obligated to do so.”

He said an in-house committee, including staff from Buttonwood, would evaluate and verify the qualifications of bidders. He said the bidders are being asked to submit references, detailed data on nursing homes they already operate, and information related to revocation or suspension of operating licenses in the past.