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Repositioning its senior care offerings, House of the Good Shepherd announces intent to close Comprehensive Personal Care and Skilled Nursing units

Independent living, outpatient rehabilitation, respite care, and remaining assisted living services remain fully operational as care model evolves

HACKETTSTOWN, N.J. – March 29, 2022 — Evolving with the changing landscape of senior care and impacts of COVID-19, the House of the Good Shepherd, a faith-based nonprofit, has announced its intent to close the skilled nursing and comprehensive personal care (CPC) units of its continuum of senior care. If finalized through regulatory approvals, the closure will take place on June 1, 2022.

“This was a very difficult decision to make, and our foremost concern is for the care of our residents and their families, and supporting our employees through this transition,” said Susan Lanza, CEO and President. “Our board is looking at numerous options to reposition the campus, and provide new models of care.”

Since March 2021, the House of the Good Shepherd’s 62-bed skilled nursing unit has been operating at a reduced 28-bed capacity, with day-to-day occupancy often lower than that. The CPC unit has a capacity of 29 apartments.

All other levels of care offered by the House of the Good Shepherd – including other assisted living services and independent living, outpatient rehabilitation, and respite care – remain strong and fully operational.

The nonprofit is working closely with the 41 impacted residents and their families to explore home care options or transitions to another care facility.

Eleven employees have been impacted by the layoffs, and the House is working with another 10 to extend opportunities in other parts of its senior care continuum. Employees who may be impacted are being informed and offered resources to aid in the transition.

The House of the Good Shepherd has been deeply impacted by the global pandemic and changing delivery models, as hospitals shifted to discharging more patients to home care, rather than to institutional settings. Other factors impacting the decision include the growing gap in Medicaid and Medicare reimbursements and costly legislative mandates that require additional staffing and other expenses, creating added pressure for nonprofits.

“Throughout the nation, complex challenges have led senior living providers to face change and take action to evolve,” said Jim McCracken, President & CEO of LeadingAge New Jersey & Delaware. “For nonprofit, faith-based caregivers, it is critical to adapt to meet the changing needs of the communities they serve. In today’s environment, even the most resilient organizations are faced with making difficult decisions like this, as they work to provide new models of care.”

“As we work to meet evolving needs, we are actively considering options to affiliate with another mission-based organization as well as exploring new household models of care,” said David Sullivan, board chair. “As challenging as this is, we are confident this decision will allow this nonprofit to meet the needs of seniors in our community for decades to come.”


With a history spanning nearly 140 years, the House of the Good Shepherd is a faith based provider that offers an array of services to seniors of all faiths and backgrounds from its riverside campus in Hackettstown, New Jersey. Its offerings include independent living, assisted living, outpatient rehabilitation, and respite care. For more information go to: www.hotgs.org.