Ottawa Nursing Beds Attract Illinois Nonprofit

August 22, 2008
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HUDSONVILLE — Another competitor has emerged for a share of new nursing home beds the state has allocated for Ottawa County.

Rest Haven Christian Services, a Tinley Park, Ill., nonprofit that operates the Haven Park skilled nursing facility in Zeeland, is proposing to build a new 50-bed nursing home in Hudsonville.

Park Place Inn of Hudsonville would be located on 25 acres at 5875 Balsam Drive. The $10.83 million project would include two 10-unit buildings that would share a common wall and a 30-unit, two-story building. Construction would total 38,000 square feet.

The nonprofit firm, with roots in the Christian Reformed community of Chicago, has filed a letter of intent to seek a certificate of need from the Michigan Department of Community Health.

A Rest Haven representative declined to be quoted.

Rest Haven also owns several assisted and independent living facilities in Kent and Ottawa counties, according to its Web site. In addition to Haven Park, Michigan holdings include: Royal Atrium Inn, Royal Park Place, Royal Care Home Services and Emerald Meadows.

The nonprofit was formed in 1954 and today serves 1,500 residents in a dozen facilities in Illinois, Indiana and Michigan, its Web site states. It offers independent town homes, retirement housing, assisted living, sheltered care, Alzheimer's programs, intermediate care, home health services, hospice care, rehabilitation services and skilled care.

Rest Haven lost $1.1 million on revenue of $61.1 million in the tax year ending Dec. 31, 2006, the latest IRS filing available for the nonprofit. It reported net assets of $26.2 million.

Providence Management and Development Inc., a wholly owned subsidiary of Rest Haven registered as a for-profit domestic corporation in Illinois, runs Rest Haven and pays CEO Richard Schutt and other key employees, according to the IRS filing. The document also states that Rest Haven paid Providence $4.2 million during the 2006 tax year, which amounted to 42 percent of Providence’s gross revenue.

The proposal is the third seeking all or a share of 175 additional nursing home beds that the state has allocated to Ottawa County. The other two proposals:

  • North Ottawa Community Health System of Grand Haven has filed a letter of intent to build a 150-bed, $16.8 million nursing home. The 90,000-square-foot, private-room facility would be constructed on Buchanan Street near U.S. 31 in Grand Haven Township. Alliance for Health President Lody Zwarensteyn said he anticipates a local public hearing on the NOCHS application in early September and a decision from MDCH in October.

  • Ciena Healthcare Management of Southfield has proposed a 167-bed, $8.98 million nursing home. The company’s letter of intent indicated it would build a 50,000-square-foot facility on 168th Avenue, south of Grand Haven.  However, while Ciena filed a full application with the state, it has not yet filed the application with the Alliance for Health, the local nonprofit that reviews certificate of need proposals in a 12-county area of West Michigan. Therefore, the application is considered to be incomplete and is not scheduled for the review process, Zwarensteyn said.

Rest Haven must file an application to trigger a review of its proposal, he added.

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