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Alameda Hospital to take over Waters Edge

13.10.11

Management at Alameda Hospital is pursuing a plan to take over the Waters Edge skilled nursing facility by the Park Street bridge, a move they say will more than double the number of patients the hospital cares for each day and boost its wobbly bottom line.

Hospital managers, who said they have been working toward a lease deal for a year, estimate their planned lease of the facility would generate $1.7 million to $2.6 million a year in revenue.

Meanwhile the owners of the facility, Alameda Elder Communities, would reap an estimated $21.8 million in lease fees over the 20-year life of the lease on the 120-bed skilled nursing facility -- money they said they could use to expand and diversify their care offerings for a growing senior population.

Hospital managers are hoping to get final approval to sign the triple-net lease, which would be for 20 years with two, five-year extensions, on Nov. 7, and to take over the facility in January.

"This is a phenomenal business opportunity. And it is this kind of thing that will allow us to transform the operations of the district," Alameda Health Care District Board President Jordan Battani said Monday, when the board voted 3-1 to move ahead with the plan.

Source: Alameda Times-Star