A familiar local health care institution that has been operating in Newtown for 34 years is being sold.

According to a spokesperson, the senior living and healthcare non-profit Masonicare announced October 23 that its operators have signed an agreement to sell their Newtown-based skilled nursing facility and assisted living community to Athena Health Care Systems.

Given legal and regulatory considerations, the sale is expected to close by the end of the year.

Masonicare has owned the Newtown operations on Toddy Hill Road for 34 years. The 45-acre campus is licensed for 154 skilled nursing beds and 55 assisted living apartments.

In making the announcement, Masonicare President and CEO Jon-Paul Venoit said, "Over the last decade the healthcare industry has seen a major shift in the utilization of post-acute services."

He cited the fact that in recent years several nursing homes in the state have closed.

Issues such as declining census, cuts in government reimbursement, the rising cost of healthcare as well increased patient acuity have strained nursing home operators.

"Unfortunately, Masonicare at Newtown has not been immune to the numerous challenges facing the industry. Over the past few years, our losses have been in the millions of dollars," he said.

Mr Venoit stressed that "this decision was not made in haste and was the result of many months of analysis. Our Newtown campus has been part of our Masonicare family for more than three decades. We feel an immense amount of responsibility to ensure the preservation and sustainability of our residents' and clients' home."

He added, "Strategically, Masonicare must continually adapt to changes in the industry to remain strong. We will continue to provide and grow home and community-based services in this area."

According to the agreement, Athena has committed to retain "substantially all" the Masonicare employees.

Farmington-based Athena has numerous skilled nursing facilities and assisted living communities in three states.

"Athena is well-equipped to assume operations and position the Newtown campus for many years of success," Mr Venoit noted, adding "we will be working closely with their team to ensure a seamless transition."