State offers emergency loan to Manchester recovery center
MANCHESTER, N.H. —
The state is stepping in to help a Manchester drug treatment center dealing with financial troubles.
Gov. Chris Sununu announced Friday that the state will provide an emergency loan to Serenity Place. The nonprofit found itself in turmoil after it racked up a deficit of $800,000.
The Executive Council approved the $180,000 loan a week after a judge forced the drug treatment center into receivership because of its growing debt.
“The fact that we were able to move this very quickly and seamlessly is a real testament to the folks that we have involved and organizations that we have involved with one goal in mind, making sure the need and care of the individuals is maintained,” Sununu said.
The money will be used for personnel-related expenses, including paying health insurance premiums for December 2017 and January 2018. The money will also cover payroll expenses for the next couple of weeks.
“Additional costs beyond that, additional services or bills that haven’t been paid, those will go through the traditional receivership process and the court process, really,” Sununu said.
Operations at the recovery center are now being run by another nonprofit, Families in Transition.
“It really is going to be a more robust and strengthened continuum of care when we’re done,” said Maureen Beauregard, president of Families in Transition.
A plan is in the works to possibly move some services and clients from Serenity Place to other nonprofits to save money.
“It’s not just the assets of Serenity that’s an issue here, but it’s what money is left in other contracts that could potentially absorb some of the services,” said Jeff Meyers of the Department of Health and Human Services.
Serenity Place will have to pay back the loan by June 30, 2019. A transition plan is expected to be presented to the Executive Council on Jan. 10.