CentraState selling off Applewood senior community in Freehold Township
FREEHOLD TOWNSHIP - CentraState Healthcare System said it would sell Applewood, a senior community in Freehold Township, to another non-for-profit organization, executives announced Wednesday, becoming the latest New Jersey hospital to reduce its footprint in residential businesses.
FellowshipLIFE, based in Bernards Township, plans to acquire Applewood and rename it Applewood Village in a move that officials said would lead to more investment in the community. The deal, which requires regulatory approval, is expected to be finalized in mid-2024. The two sides didn't disclose the purchase price.
"This is a great opportunity to make sure we provide the right infrastructure throughout New Jersey to support New Jerseyans as they age, in an environment that is appealing to them," Brian Lawrence, president and chief executive officer of FellowshipLIFE, said in an interview.
"And that's critical, right?" Lawrence continued. "We're very unique, where we'll constantly reinvest in our communities to make sure they're meeting that active lifestyle that the boomer generation is looking for today."
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Applewood now has about 330 residents and 250 employees. It is considered a continuing care retirement community with 300 independent-living residences for people age 62 and older; 40 assisted-living apartments; 60 skilled-nursing apartments and 11 specialized-memory units.
Residents sign a contract — one with a higher entry fee that assures them of long-term care, or another with a lower entry fee in which they pay for care as they go. And the community includes amenities such as a dining room, fitness center and swimming pools.
When what was then called Freehold Area Hospital built and opened Applewood in 1990, it was thought to be the first hospital-affiliated senior community in the state, launching a strategy that saw hospitals as having a "touch point" throughout people's lives
New Jersey hospitals in recent years have stepped back from that role. Hackensack Meridian Health two years ago sold the majority of its nursing homes and assisted living residences to Complete Care Management, a for-profit company based in Toms River. That deal called for Hackensack Meridian to share in the governance of the facilities for 10 years.
CentraState President and Chief Executive Officer Thomas Scott said in an interview that the health system needed to prioritize its investments on its core business.
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"We've got a lot of things we're trying to accomplish at the hospital, and, unfortunately, that's where a lot of the priority and a lot of the capital funds are flowing right now," Scott said. "Applewood also has some capital requirements, but those are lower on the totem pole for us. So one of the things we were hoping to do is (figure out) how can we lift up both organizations?"
Scott said FellowshipLIFE's status as a not-for-profit was appealing. It stands in contrast to a trend that has seen for-profit companies increasingly take control of long-term-facilities, and, critics say, cut costs.
CentraState will continue to have representatives on Applewood's board of directors. And the hospital will provide an on-site primary care practice and medical director at Applewood.
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FellowshipLIFE was founded nearly 30 years ago and has grown to include four senior communities from Warren County to Salem County: Riverwalk Village in Hackettstown, Fellowship Village in Bernards Township, Pines Village in Manchester, and Friends Village in Woodstown.
Lawrence said the addition of Applewood would give the company more bargaining power, helping save money on contracts so that it can continue to reinvest in the community and attract the giant baby boomer generation that now is reaching retirement age.
Among the new amenities Applewood residents are said to be clamoring for: pickleball courts.
"This is what the boomer generation is looking for: that engagement and activities," Lawrence said. "We reinvest in all our communities to make sure it's well-positioned for the marketplace and what consumers are looking for. So it's going to be ongoing investment and focus."
CentraState still owns two other senior living facilities: The Manor Health and Rehabilitation Center, which offers comprehensive short-term rehabilitation and long-term skilled nursing services for adults ages 18 and older; and Monmouth Crossing, an assisted living facility. Both are in Freehold Township.
Michael L. Diamond is a business reporter who has been writing about the New Jersey economy and health care industry for more than 20 years. He can be reached at mdiamond@gannettnj.com
This article originally appeared on Asbury Park Press: Applewood senior community in Freehold Township sold by CentraState
