The privatization of a Saratoga County nursing home that has become a drain on the county’s finances has cleared another regulatory hurdle.
In December 2013, Saratoga County and Zenith Care Health Group entered a $14 million agreement to transfer ownership and operation of the county-owned Maplewood Manor nursing home to the Nassau County-based company.
In February, Zenith filed a Certificate of Need, or C.O.N., application with the New York State Department of Health. Over the past several months, the company has been communicating with the state and showing its intentions in operating the 257-bed facility.
Saratoga County Administrator Spencer Hellwig said the New York State Department of Health released documentation allowing the sale of the facility to move a step forward.
“That process came to a head last Thursday, October 2nd when the state issued a Contingency O.N. So, that’s essentially the last step before a final C.O.N. is issued, at which point the county and Zenith can hold a closing,” said Hellwig.
For the past decade, Saratoga County has been taking money from its general fund to pay for the operation of the facility. In January 2013, the county formed a Local Development Corporation to facilitate the privatization of the home, with a goal set for 2014.
“We were looking, I believe at that time, just to cover the upcoming budget year, a 20 percent tax hike. It wasn’t sustainable at that point, at which time the Board made the decision to move forward with the privatization,” said Hellwig.
Hellwig estimates the county pays out more than $30,000 to keep the home running.
On Tuesday, Saratoga Springs supervisor Matt Veitch provided an update to the city’s commissioners on the pending sale. Veitch said he expects the closure of the deal to happen on schedule.
‘Basically the estimate we’ve been given is two to three months from today,” said Veitch. “So if it’s two months from today we’ll be done by the end of 2014, if it’s three months from today it will be January 2015.“
Veitch said Zenith has communicated to county officials that all current employees would be able to apply to work under the new management, but he could not provide more details.
After the sale is finalized, Saratoga County would still be on the hook to pay for pension benefits.
Steve Aquario, Executive Director of the New York State Association of Counties, said the property tax cap and declining Medicare reimbursement rates have had an impact across New York.
Of the 57 counties outside of New York City, 44 have provided public health service facilities. Of those, 21 have made the decision that they can no longer afford to keep the facilities in public ownership.
“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.”
Aquario said the cost of Medicaid facing New York counties is approaching $8 billion.
Maplewood Manor employs 300 workers.
The privatization of a Saratoga County nursing home that has become a drain on the county’s finances has cleared another regulatory hurdle. WAMC’s Southern Adirondack Bureau Chief Lucas Willard reports…
In December 2013, Saratoga County and Zenith Care Health Group entered a $14 million agreement to transfer ownership and operation of the county-owned Maplewood Manor nursing home to the Nassau County-based company.
In February, Zenith filed a Certificate of Need, or C.O.N., application with the New York State Department of Health. Over the past several months, the company has been communicating with the state and showing its intentions in operating the 257-bed facility.
Saratoga County Administrator Spencer Hellwig said the New York State Department of Health released documentation allowing the sale of the facility to move a step forward.
“That process came to a head last Thursday, October 2nd when the state issued a Contingency O.N. So, that’s essentially the last step before a final C.O.N. is issued, at which point the county and Zenith can hold a closing,” said Hellwig.
For the past decade, Saratoga County has been taking money from its general fund to pay for the operation of the facility. In January 2013, the county formed a Local Development Corporation to facilitate the privatization of the home, with a goal set for 2014.
“We were looking, I believe at that time, just to cover the upcoming budget year, a 20 percent tax hike. It wasn’t sustainable at that point, at which time the Board made the decision to move forward with the privatization,” said Hellwig.
Hellwig estimates the county pays out more than $30,000 to keep the home running.
On Tuesday, Saratoga Springs supervisor Matt Veitch provided an update to the city’s commissioners on the pending sale. Veitch said he expects the closure of the deal to happen on schedule.
‘Basically the estimate we’ve been given is two to three months from today,” said Veitch. “So if it’s two months from today we’ll be done by the end of 2014, if it’s three months from today it will be January 2015.“
Veitch said Zenith has communicated to county officials that all current employees would be able to apply to work under the new management, but he could not provide more details.
After the sale is finalized, Saratoga County would still be on the hook to pay for pension benefits.
Steve Aquario, Executive Director of the New York State Association of Counties, said the property tax cap and declining Medicare reimbursement rates have had an impact across New York.
Of the 57 counties outside of New York City, 44 have provided public health service facilities. Of those, 21 have made the decision that they can no longer afford to keep the facilities in public ownership.
“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.”
Aquario said the cost of Medicaid facing New York counties is approaching $8 billion.
Maplewood Manor employs 300 workers.
