Aldersgate CEO says she's proud of steps to improve financial position
In a statement, Suzanne Pugh says the east Charlotte retirement community is working through its financial issues
The following article appeared in the August 23, 2023, edition of The Charlotte Ledger, an email newsletter with smart and original information about Charlotte. Sign up here.
Aldersgate CEO says the east Charlotte retirement community is working with outside advisors to help
by Cristina Bolling and Tony Mecia
Last Friday, we reported the news of financial troubles at Aldersgate, and that the N.C. Department of Insurance has stepped in to oversee the financial operations at the large retirement community that’s operated in east Charlotte for more than 45 years.
Documents filed with the state show that insurance regulators, who oversee the financial aspects of continuing care retirement homes like Aldersgate, have been scrutinizing Aldersgate for months, as the non-profit has worked to overcome years of financial losses and what it described as financial mismanagement.
Officials from Aldersgate didn’t reply to us in time for our Friday article, but on Monday afternoon, Suzanne Pugh, CEO of Aldersgate Life Plan Services, sent a statement to The Ledger through a spokesman:
We have been coordinating with the North Carolina Department of Insurance (NCDOI) since earlier this year to develop and implement a Corrective Action Plan (CAP) to resolve issues we identified during a thorough review of company operations. Our work and progress are monitored by the DOI and supported through the guidance of independent, third-party resources brought in to assist us.
It is important to point out that Aldersgate received a clean, unmodified opinion from its independent auditors as of 12/31/22. The audited financial statements and related footnotes should be read in their entirety to fully understand our financial position as of 12/31/22 and the significant operating and non-operating activities that occurred impacting Aldersgate’s financial position as of 12/31/22. If the independent auditors had concerns about Aldersgate’s ability to continue as a going concern for the next 12 months, we would not have received an unmodified opinion.
Aldersgate has been paying and continues to pay debt service, vendors, employees and other obligations. The primary obligation in which we are behind in paying are entrance fees refunds for former residents, which we disclosed to our auditors. We acknowledge those obligations and are catching up on those repayments as quickly as possible.
Aldersgate continues to provide outstanding care and service to elders across the continuum of care within this community. We remain dedicated to meeting the needs and expectations of those we are honored to serve.
We are proud of the fact that we have taken significant steps in recent months to improve our short-term financial position and are committed to making decisions that are in the best interest of the long term financial health and sustainability of the organization. We continue to make progress on our plan and our board and leadership remain confident in our ability to resolve these issues while maintaining a thriving Aldersgate community. The health, happiness and stability of our residents continue to be of the utmost importance, and we will remain forthcoming in our communications to our residents, families, staff and community throughout this process.
We’re happy to be able to share her perspective. Anyone can read Aldersgate’s full audit and disclosure statement, which are available online.
If we have one quibble with Pugh’s interpretation, though,