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Eastern Niagara Hospital is selling Newfane nursing home to New Jersey company

NEWFANE – The Newfane Rehabilitation and Health Care Center, a 175-bed nursing home, will be sold in the next few months, Eastern Niagara Hospital, the owner, announced Monday.

The facility is being sold to Maximus Healthcare LLC, a New Jersey company, according to an announcement from the hospital.

The facility was purchased by the former Inter-Community Memorial Hospital in 1997 and came under the Eastern Niagara banner when the Newfane hospital amalgamated with Lockport Memorial Hospital a few years later.

Eastern Niagara said earlier this year that it was losing money, which was its primary reason for doing away with acute care at the former hospital in Newfane. That facility now offers an emergency room and outpatient testing.

The sale of the nursing home drew differing responses from the local officials who were on the front lines of the unsuccessful battle to save Newfane’s full-service hospital.

“I guess it further exemplifies the financial problems Eastern Niagara Hospital is experiencing,” said Somerset Supervisor Daniel M. Engert. “Their need to off-load their assets is troubling to me.”

But Newfane Supervisor Timothy R. Horanburg favored the sale.

“I’m thinking that it’s a good deal for Newfane,” Horanburg said. “I think it’s going to be a more much stable facility, and they’re going to invest some money in it and give it a much-needed upgrade.”

And, he added, “If it’s privatized, it’ll go back on the tax rolls. I’m sure the buyer will be getting in touch with us.”

Eastern Niagara issued a news release announcing the deal and declined to go beyond it. CEO Clare A. Haar and board chairman George V.C. Muscato did not return calls seeking comment.

According to the news release, the deal will take several months to complete.