Vacant building: Loss of Medicaid option forces LifeSpring to sell Hedden House

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The Hedden House, located at 801 Vincennes St. in New Albany is being sold by LifeSpring Inc. Staff photo by Kevin McGloshen
The Sarkisian House, located at 904 E. Spring St. in New Albany is being sold by LifeSpring Inc. Staff photo by Kevin McGloshen
A plaque affixed to the outside of the Sarkisian House in New Albany proclaims the former purpose of the home. Staff photo by Kevin McGloshen

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February 5, 2011

By DANIEL SUDDEATH Daniel.Suddeath@newsandtribune.com The News and Tribune Sat Feb 05, 2011, 10:05 PM EST

NEW ALBANY — A historic New Albany home is one of two buildings that has been placed on the housing market by a nonprofit owner that feels backed into a corner.

State changes in Medicaid that went into effect last July forced Jeffersonville-based LifeSpring Inc. to put the Hedden House and Sarkisian House up for sale, organization President and Chief Executive Officer Terry Stawar said.

LifeSpring is a mental health provider that houses patients dealing with behavioral health and addiction problems in several locations in Clark and Floyd counties.

The historic Hedden House — located at 801 Vincennes St. — provided beds for up to eight women, many of whom were dealing with criminal issues as well as mental and drug problems, Stawar said.

“It was one of our prime facilities for treating women” he said. “It was extremely disappointing for us to have to put [Hedden House] up on the market for sale.”

The Sarkisian House, located at 904 E. Spring St., housed men dealing with mental and substance abuse problems. Both houses are now empty, and their asking price is $100,000 each.

The houses may be worth up to $150,000, but Stawar said LifeSpring was never interested in selling the structures.

“It’s a real tragedy,” he said.

Nearly half of the funding for the programs offered at the houses was cut last year when Indiana’s Division of Mental Health and Addiction restructured the Medicaid Rehabilitation Option.

Along with leading to the loss of jobs at the organization, the change cut programs LifeSpring could bill Medicaid for, including the services offered at the Hedden House and Sarkisian House.

LifeSpring also recently sold one of its buildings in Jeffersonville, and Stawar said the nonprofit is having to closely scrutinize the programs it can afford to offer.

Stawar said he’s worked in mental health and substance abuse services for 35 years, and the past 12 months have been the “worst year I think I’ve ever seen in terms of reduction of funding and undermining of programs.”

The Hedden House was constructed in 1877 by the Banes Brothers, who were notable contractors during their time that also built the Culbertson Mansion.

“The Hedden family as a unit is still unsurpassed in their import and credibility as local historians,” said Steve Anshutz, New Albany-Floyd County Public Library employee and local historian.

The house was built for John R. Gebhart, who married into the Hedden family. Gebhart was noted for his involvement with the New Albany Woolen Mills industry that was located near the present New Albany High School.

“They were quite the business people,” Floyd County Historian David Barksdale said.

The Hedden family line was also synonymous with music, Barksdale said.

“They were a very influential family of New Albanians,” he said.

LifeSpring will be particular about who purchases the properties, Stawar said.

“We want a legitimate tenant or buyer there that will do something for the community,” he said. “It’s a tough thing for us. We worked really hard to acquire these properties and set them up as group homes.”

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Vacant building: Loss of Medicaid option forces LifeSpring to sell Hedden House

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