The potential new owner of Saratoga County’s Maplewood Manor nursing home says it’s working to reduce the impact on current staffing levels as the home approaches privatization, but some cuts may be unavoidable.
The Saratogian newspaper reported earlier this month that employees at Maplewood Manor were handed a notice that up to 97 full- and part-time positions could be cut as the county-owned nursing home changes to private hands.
Potential new owner Zenith Care Health Group also said in the notice that some salary positions could be cut by up to 50 percent. Maplewood Manor employs about 400 workers at the 277-bed facility.
Zenith spokesman Aaron Lichtman said the company met with CSEA, the union representing workers at the home, for a lengthy discussion on its transition on Tuesday.
“The union is participating with Zenith to try to make the impact as small as possible for everybody, but we all recognize the financial reality that nobody can operate the facility without using the taxpayers’ backs and lose several millions of dollars a year,” said Lichtman.
One year ago, Saratoga County entered a $14 million agreement with Zenith to transfer ownership to the Nassau County-based company.
Officials had been hoping to finalize the sale by year’s end. The county formed a Local Development Corporation in January 2013 to facilitate the sale.
In October, Saratoga County Administrator Spencer Hellwig told WAMC that the county pays more than $30,000 a day to keep the home running.
“We can’t carry them beyond next year without bankrupting the county, so part of the value of the LDC was to get the process under way and completed in the shortest time possible, so we didn’t have to struggle to keep coming up with funds to underwrite the losses,” said Hellwig.
CSEA did not immediately respond to request for comment.
According to Steve Aquario, Executive Director of the New York State Association of Counties, the property tax cap and declining Medicare reimbursement rates have had a large impact on counties’ ability to fund publicly owned homes.
Aquario previously said that of the 57 counties outside New York City, 21 have decided to pursue privatization.
“This has been the most sacrifice that I’ve seen in decades for the counties to have to make this decision. It is a painful one. It is something that the supervisors, the legislators, the county executives look at very carefully.”
Saratoga County will still be on the hook to pay out public employee pensions and benefits.
As part of the deal, Zenith will be making $2.5 million in facility upgrades to the home.
Lichtman said in order for the sale to follow-through by the end of the year, the union and employees will have to accept the realities of the situation.
“It is exceedingly tough for anybody to be in a situation where they have to accept a salary cut or a change in their benefits, and we’re cognizant of that and are not able to go forward unless the workers believe in the facility in the future, and are willing to share in some of the pains,” said Lichtman.
