The Group Health Centre, which has been plagued with problems since it announced earlier this year it was de-rostering over 10,000 patients, has listed two of its Sault Ste. Marie properties for sale for a combined $5.7 million.
One of those buildings, 170 East St., is the site of the Access Care Clinic — a $2.8-million plan by the provincial government to allow the Group Health Centre (GHC) to provide primary care services to up to 11,200 patients that were de-rostered.
That 20,000 square-foot building was valued at $3.4 million when it was gifted to the GHC in 2012 for one dollar, plus assuming an outstanding mortgage of $988,000 through a numbered company owned by GHC. Three days ago, 170 East St. was listed on REALTOR.com for $1.5 million.
On Tuesday, GHC manager of communication Giordan Zin confirmed that building and the GNR Professional Centre at 773 Great Northern Rd. are both for sale. The GNR Professional Centre was also listed three days ago with an asking price of $4.2 million.
"This decision has been part of a long-term strategy to focus more on patient care and program development rather than property management," said Zin.
The numbered company took out a new mortgage on the property for $3.4 million in February of 2013. It’s not clear how much of that is still owing.
"Since we are in the process of listing these buildings for sale, we are unable to share specific information that could potentially prejudice us in any negotiations with prospective buyers," said Zin of what remains owing on the properties.
If sold, the GHC is not planning on moving out, but becoming a tenant. Currently, 170 East St. operates primary care offices, the Access Care Clinic, the Hep Care Program and the HIV/AIDS Resource Program from the building, while primary care offices, OBGYN services and Women’s Health are offered from 773 Great Northern Rd.
"While these buildings are being sold, GHC plans to remain in the spaces through long-term lease agreements," said Zin.
"This ensures there will be no disruption to the programs and services offered at these locations."
The property at 773 Great Northern Rd. was purchased by another numbered company linked to GHC for a total of $2.2 million. Recent audited financial statements released by GHC show that numbered company owns 52.5 per cent of the property, with other investors owning the rest.
"The decision to sell and divest this interest was made by the board of 2351132 ONTARIO INC., which oversees the ownership of the property," said Zin.
In May 2014, the company took out a $3.8-million mortgage on 773 Great Northern. It’s not clear how much is still owing on that mortgage.
In March, SooToday reported that GHC's lender moved millions of dollars in loans from interest rates below 2 per cent to variable mortgages that at the time were at 7.2 per cent interest.
Zin said selling the buildings is part of GHC's long-term strategy.
"Like many health-care organizations, we do face financial pressures, but this decision is about being proactive and strategic," he said.
"By transitioning to a tenant model, we’re better positioned to prioritize resources for enhancing patient care and expanding services, rather than managing buildings."
Aside from the financial troubles GHC has experienced as a result of de-rostering so many patients in such a short amount of time, both the Sault Ste. Marie and District Group Health Association and the Group Health Centre Trust Fund temporarily lost their charitable status.
Zin said the potential sale of the buildings is unrelated to the temporary loss of the organization's charitable status.
A lawsuit filed earlier this year by United Steel Workers Local 2251 president Mike Da Prat against the GHC is still making its way through the courts. As of Tuesday morning, no statement of defence has been filed by GHC.