Gary nursing home on auction block
By Carole Carlson email@example.com/302-0949 October 18, 2013 11:34PM
South Shore Health & Rehabilitation director Richard Kennedy, right, talks with resident Charles Blackman, of East Chicago, about his therapy. The Gary nursing home at 353 Tyler St. is being sold Nov. 6 in a sealed bid auction. | Carole Carlson/Post-Tribune
South Shore Health and
Rehabiliation auction Nov. 6
Contact: (800) 516-0015
Updated: November 20, 2013 6:02AM
GARY — One of the city’s oldest nursing homes is expected to sell for at least $1.5 million at an auction next month.
South Shore Health and Rehabilitation Center, 353 Tyler St., will be sold at a sealed bid auction on Nov. 6, said Jonathan Cuticelli, project manager for New York-based auctioneer Sheldon Good & Co. Nursing home operations are expected to continue under a new owner.
The auction was one of the conditions of a foreclosure lawsuit filed by the bondholders of the not-for-profit company that operates it.
Cuticelli said the minimum bid price has been set at $1.5 million. “It really depends on who has the appetite for these kinds of properties,” he said.
After bids are opened Nov. 6, Cuticelli said a trustee and attorneys will review the bids and make a decision.
One of the conditions of the sale is the new owner will be required to have certification from the Indiana State Board of Health. Cuticelli said bidders will be required to already hold that certification before being allowed to participate in the bidding, to make sure the transfer of the property won’t be delayed.
Sheldon Good has been showing the property to prospective bidders with the final showing on Oct. 24.
Formerly known as the West Side Health Care Center, the sprawling, 1.5-acre facility has 129 beds, spanning nearly a city block. It employs about 100 workers.
South Shore has been hindered in recent years by reimbursement cuts by state and federal health insurance programs.
Its state quality rating dropped to just one star after Indiana State Board of Health inspectors cited a variety of deficiencies involving general care, staffing, housekeeping and building issues.
Its population dropped to about 50 residents, but new executive director Richard Kennedy said operations and profitability have improved in the past five months he’s been in charge.
“This facility has experienced a real turnaround,” Kennedy said. “We will see an increase in the star rating.”
Kennedy said the center now has about 70 residents. “What we’re seeing is a high influx of referrals.”
Kennedy wasn’t sure when the facility opened, but said it was decades ago.
“This building is a landmark for the city,” he said. Because it is older, the rooms are larger than those in newer nursing homes, he said.
Charles Blackman, of East Chicago, lives in the newly reopened skilled-care wing, equipped with cable TV and Wi-Fi.
“It’s good,” he said of his care. He said when he came to South Shore from a hospital he couldn’t walk. After therapy, he’s now able to navigate on his own with a walker.
Cuticelli said initially some of the past deficiencies could impact the sale.
“I found some negative feedback. After they come and take a look and see that it’s clean, employees are happy and residents look good, it’s a different story.”