A B.C. seniors' home that has long complained of chronic underfunding by the Vancouver Island Health Authority is being sold and has laid off more than 150 employees -- its entire staff.

The Good Samaritan Society, which has run the Wexford Creek care home in Nanaimo since 2008, says it had no choice but to sell the operation after absorbing $2.6 million in losses.

The non-profit social service organization has placed blame on the Vancouver Island Health Authority, who it says did not provide adequate funding increases.

Its employees' union echoed that statement.

"Clearly Island Health has been unable to assure stability and continuity of care at many facilities that it funds," Jennifer Whiteside, secretary-business manager of the Hospital Employees' Union, told CTV Vancouver.

But Island Health says it was not a case of lack of funding, but rather mismanagement.

"We felt that there were some actions that management could take to improve the financial position of the organization, and that some of their decisions contributed to the financial challenges," said Norm Peters, executive director of surgical services, heart health and residential care at Island Health.

The Wexford Creek care home has faced similar turmoil before. In 2014, 110 staff were laid off and then rehired at lower wages.

At B.C.'s legislative assembly on Tuesday, NDP health critic Judy Darcy asked said the Liberal government had ignored a systematic funding problem.

"Can the minister explain why this government is so heartless that it is letting this happen once again, and disrupting the lives of these frail elderly in care," said Darcy.

In response, B.C.'s health minister, Terry Lake, called the situation "unfortunate" and promised to ensure residents of the home are properly cared for.

"We will be working with Island Health, and working very closely to ensure any transition is smooth, (and) that the needs of the residents and their families are looked after," said Lake.

Island Health has promised to oversee the transition and to ensure the least amount of disruption for patients.

Details on the new owners have not been released, but staff was informed all work will be contracted out starting on October 1.

With a report from CTV Vancouver's Chandler Grieve