PHP Healthcare sells interest in six New Jersey centers
PHP Healthcare Corp., based in Reston, VA, has sold its real estate interest in six healthcare centers in New Jersey, but will continue to operate the centers through a 17-year lease on these properties. The centers, which are operated under Pinnacle Health Enterprises, went to G & L Realty Corporation for $22.5 million.
The sale completes a transaction announced in March in which PHP purchased the assets of 10 health care centers that were operated for Blue Cross Blue Shield of New Jersey (BCBSNJ). Four of the centers were housed in leased properties, but six of the center buildings were owned by BCBSNJ. PHP had purchased these six buildings in conjunction with G & L Realty to facilitate its agreement with BCBSNJ.
"It was always our intention that G & L Realty should gain full ownership of these properties," says Jack M. Mazur, president and CEO of PHP Healthcare Corporation. "Rather than own properties, we prefer to lease the necessary space for our operations from realty companies, such as G & L, that are knowledgeable about the requirements of health care industry tenants."
As components of Pinnacle Health Enterprises PHP’s integrated health care system in New Jersey these centers are part of a network serving a patient base of more than 20,000 members of HIP Health Plan of New Jersey and 30,000 members of BCBSNJ.
PHP develops, consolidates, and manages integrated health care delivery networks which are marketed to HMOs, insurers, self-insured employers, and government agencies.
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