With state budget cuts looming, Cayuga County legislators are preparing for a difficult year for programs and facilities across the board.
Chet Susslin / The Citizen
The Cayuga County Nursing Home is located at 7451 County House Road in the town of Sennett.
The Cayuga County Nursing Home is located at 7451 County House Road in the town of Sennett.
But none may see bigger challenges than the Cayuga County Nursing Home, which has been losing money in recent years. Cayuga County has owned and operated the nursing home since 1983 and local officials have considered trying to sell the facility to a private operator in the past but decided to stick with the county-owned model.
This year, though, lawmakers intend to review the issue once again.
Ann Petrus, chairwoman of the Health and Human Services Committee, said she is in favor of addressing the issue, though she is not sure how she stands on at this point.
“We can't put things off,” she said last week. “We have to have a plan, and from the plan we have to have decisions, and from that, we have to proceed with the decisions.”
For 2009, Cayuga County has budgeted $7.1 million to operate the nursing home, but it's projecting revenues of just $5.7 million. To balance the budget, the county is using $1.4 million from the general reserve fund. It was budgeted to use $432,000 from it in 2008 and $179,000 in 2007. It also transferred $800,000 into the nursing home budget for a capital project in 2007, and another $200,000 in 2008.
But the bottom line is that the facility is not able to sustain itself.
For Petrus, though, it is just as important to ensure the nursing home is a good place to stay as it is to discuss the possibility of selling the facility.
“We shouldn't just give up human services. The nursing home is truly one of the elements of human services,” Petrus, R-Brutus, said. “We want to make sure that we make the right decision.”
In many cases, it is difficult to sell a product of human services, Petrus said, and that becomes a burden on everyone in the community.
“I just want to make sure before I make a decision on it, that we make the right decision,” she said. “If it's making a profit, I'm not in a rush to do it. We just need to look at it with a sharp eye and a warm heart.”
There are currently 50 county-owned and operated nursing homes, according to the state Department of Health. Of those, 21 are members of the New York Association of Homes and Services for the Aging, an Albany-based organization that advocates for nonprofit and government-run agencies for the elderly in New York.
Carl Young, president of NYAHSA, said some counties have believed they would save money by selling their nursing home to another provider. However, he cautioned that others may not be able to provide the same level of care.
“It is a very legitimate concern. If a facility has to take a profit out to begin with, it will be very hard to sustain the same high level of quality that is being provided,” he said. “It's unlikely that any other provider will serve that same role as being a safety net in the community.”
One example Young gave was a not-for-profit group that had to sell two nursing homes in Brooklyn. Once the nursing homes were sold, the new owner laid off more than 80 employees over night. Within two months, the same facilities were being cited for various violations. While this single example is not necessarily indicative of what happens every time a facility goes from government-operated to private ownership, it is a clear example of the possibilities, Young said.
Cayuga County legislator Steven Cuddeback, R-Niles, was in favor of privatizing the nursing home in the past and hopes the Legislature will resume its discussion within the next year or two.
“We're working against private industry and I don't believe that the county should be in direct competition with the private sector. I mean, we have unequal and unfair abilities over the private sector,” he said. “It's also a drain on the taxpayers.”
Though he is uncertain about the process privatization involves, he believes it is necessary to reopen the discussion.
Raymond Lockwood was also a proponent of privatizing the nursing home a few years ago. At the time, Lockwood, R-Fleming, was chairman of the Legislature and proposed selling the operating license to a private company but maintaining ownership and control of the facility.
“That way, we would have the cost savings of having a volume operation #( They would actually run it and we would have the oversight of it,” he said.
Lockwood recognizes it will cost the county substantial money to continue operating the nursing home and he believes if the county maintains a presence and oversight, there would not be a break in the care.
He also understands that the idea of privatization will probably be met with resistance from the community.
“Nobody likes change. The best thing you can do is walk through the whole scenario, to make sure that there's transparency, that everybody knows the reasons of why we're doing it and how we're doing it and have public opinion on the decision,” Lockwood said.
Lockwood sees privatization as an important step because he believes the county should not be in the business of services that can be provided by somebody else.
Peter Tortorici, R-Auburn, is also in favor of reopening the discussion. Like Petrus, he is interested in hearing the pros and cons before making his decision. Tortorici is expected to be selected as the Legislature's next chairman when it meets this week.
“We should have that discussion, looking into the ways to still provide a quality service to all the residents there and also the employees. #( It's important that we do the best thing for the residents (of the nursing home) and for the taxpayers of this county and that's done through discussion,” he said. “We would try to do what's best for both.”
County Manager Wayne Allen explained what lawmakers should be aware of when making the decision.
He also broke down the last two years of fund transfers from the Legislature's general fund to the nursing home's account. The nearly $800,00 transferred in 2007 was used to improve the facility and upgrade equipment. It was used for things like the rooms and furniture, Allen said.
Last year, the nursing home requested $200,000 and the county Legislature agreed, putting the funds into the to be raised through taxes. During the 2009 budget process, the nursing home was looking for $1 million, Allen said. However, the county came up with a different approach.
Instead of raising taxes, Cayuga County set aside $1.4 million from its fund balance through an intergovernmental transfer. By doing this, the facility also will receive another $1.5 million from the federal government. While this money will be enough to balance the budgets for 2008 and 2009, changes will need to take place to ensure the nursing home can operate by itself in the green after that.
“Unless something dramatically changes, we're going to be in the red,” Allen said.
Allen pointed out that legislators will need to decide what is best for the most amount people when discussing options for the nursing home.
“The question in my mind is, when you look at the nursing home, we have a population of over 80,000 (in the county), and we have a large elderly community. We're spending millions on 80 beds. Is it fair to spend that kind of money for 80 beds?
“Because not everyone in the county will be able to be accommodated by the county nursing home,” he said. “Are there alternatives so that everybody who needs a bed can get a place? When we provide a county service, everyone in the county should be eligible to receive that service.”
Despite the struggle to balance the nursing home's budget, Allen stressed employees and administrators are not to blame.
“It's no fault of the people that work in the nursing home. They do the best job they possibly can. But this has a lot to do with the way the feds and state provide for low and moderate-income people,” Allen said.
County nursing home administrator Debra English did not return calls for this story.
If the county decides to privatize, Allen explained the transition will take between one to two years and will require a comprehensive transition plan.
“This is not a reflection upon management or staff,” Allen said. “This comes down to economics and what is fair.”
Staff writer Gitana Mirochnik can be reached at 253-5311 ext. 237 or gitana.mirochnik@lee.net
This year, though, lawmakers intend to review the issue once again.
Ann Petrus, chairwoman of the Health and Human Services Committee, said she is in favor of addressing the issue, though she is not sure how she stands on at this point.
“We can't put things off,” she said last week. “We have to have a plan, and from the plan we have to have decisions, and from that, we have to proceed with the decisions.”
For 2009, Cayuga County has budgeted $7.1 million to operate the nursing home, but it's projecting revenues of just $5.7 million. To balance the budget, the county is using $1.4 million from the general reserve fund. It was budgeted to use $432,000 from it in 2008 and $179,000 in 2007. It also transferred $800,000 into the nursing home budget for a capital project in 2007, and another $200,000 in 2008.
But the bottom line is that the facility is not able to sustain itself.
For Petrus, though, it is just as important to ensure the nursing home is a good place to stay as it is to discuss the possibility of selling the facility.
“We shouldn't just give up human services. The nursing home is truly one of the elements of human services,” Petrus, R-Brutus, said. “We want to make sure that we make the right decision.”
In many cases, it is difficult to sell a product of human services, Petrus said, and that becomes a burden on everyone in the community.
“I just want to make sure before I make a decision on it, that we make the right decision,” she said. “If it's making a profit, I'm not in a rush to do it. We just need to look at it with a sharp eye and a warm heart.”
There are currently 50 county-owned and operated nursing homes, according to the state Department of Health. Of those, 21 are members of the New York Association of Homes and Services for the Aging, an Albany-based organization that advocates for nonprofit and government-run agencies for the elderly in New York.
Carl Young, president of NYAHSA, said some counties have believed they would save money by selling their nursing home to another provider. However, he cautioned that others may not be able to provide the same level of care.
“It is a very legitimate concern. If a facility has to take a profit out to begin with, it will be very hard to sustain the same high level of quality that is being provided,” he said. “It's unlikely that any other provider will serve that same role as being a safety net in the community.”
One example Young gave was a not-for-profit group that had to sell two nursing homes in Brooklyn. Once the nursing homes were sold, the new owner laid off more than 80 employees over night. Within two months, the same facilities were being cited for various violations. While this single example is not necessarily indicative of what happens every time a facility goes from government-operated to private ownership, it is a clear example of the possibilities, Young said.
Cayuga County legislator Steven Cuddeback, R-Niles, was in favor of privatizing the nursing home in the past and hopes the Legislature will resume its discussion within the next year or two.
“We're working against private industry and I don't believe that the county should be in direct competition with the private sector. I mean, we have unequal and unfair abilities over the private sector,” he said. “It's also a drain on the taxpayers.”
Though he is uncertain about the process privatization involves, he believes it is necessary to reopen the discussion.
Raymond Lockwood was also a proponent of privatizing the nursing home a few years ago. At the time, Lockwood, R-Fleming, was chairman of the Legislature and proposed selling the operating license to a private company but maintaining ownership and control of the facility.
“That way, we would have the cost savings of having a volume operation #( They would actually run it and we would have the oversight of it,” he said.
Lockwood recognizes it will cost the county substantial money to continue operating the nursing home and he believes if the county maintains a presence and oversight, there would not be a break in the care.
He also understands that the idea of privatization will probably be met with resistance from the community.
“Nobody likes change. The best thing you can do is walk through the whole scenario, to make sure that there's transparency, that everybody knows the reasons of why we're doing it and how we're doing it and have public opinion on the decision,” Lockwood said.
Lockwood sees privatization as an important step because he believes the county should not be in the business of services that can be provided by somebody else.
Peter Tortorici, R-Auburn, is also in favor of reopening the discussion. Like Petrus, he is interested in hearing the pros and cons before making his decision. Tortorici is expected to be selected as the Legislature's next chairman when it meets this week.
“We should have that discussion, looking into the ways to still provide a quality service to all the residents there and also the employees. #( It's important that we do the best thing for the residents (of the nursing home) and for the taxpayers of this county and that's done through discussion,” he said. “We would try to do what's best for both.”
County Manager Wayne Allen explained what lawmakers should be aware of when making the decision.
He also broke down the last two years of fund transfers from the Legislature's general fund to the nursing home's account. The nearly $800,00 transferred in 2007 was used to improve the facility and upgrade equipment. It was used for things like the rooms and furniture, Allen said.
Last year, the nursing home requested $200,000 and the county Legislature agreed, putting the funds into the to be raised through taxes. During the 2009 budget process, the nursing home was looking for $1 million, Allen said. However, the county came up with a different approach.
Instead of raising taxes, Cayuga County set aside $1.4 million from its fund balance through an intergovernmental transfer. By doing this, the facility also will receive another $1.5 million from the federal government. While this money will be enough to balance the budgets for 2008 and 2009, changes will need to take place to ensure the nursing home can operate by itself in the green after that.
“Unless something dramatically changes, we're going to be in the red,” Allen said.
Allen pointed out that legislators will need to decide what is best for the most amount people when discussing options for the nursing home.
“The question in my mind is, when you look at the nursing home, we have a population of over 80,000 (in the county), and we have a large elderly community. We're spending millions on 80 beds. Is it fair to spend that kind of money for 80 beds?
“Because not everyone in the county will be able to be accommodated by the county nursing home,” he said. “Are there alternatives so that everybody who needs a bed can get a place? When we provide a county service, everyone in the county should be eligible to receive that service.”
Despite the struggle to balance the nursing home's budget, Allen stressed employees and administrators are not to blame.
“It's no fault of the people that work in the nursing home. They do the best job they possibly can. But this has a lot to do with the way the feds and state provide for low and moderate-income people,” Allen said.
County nursing home administrator Debra English did not return calls for this story.
If the county decides to privatize, Allen explained the transition will take between one to two years and will require a comprehensive transition plan.
“This is not a reflection upon management or staff,” Allen said. “This comes down to economics and what is fair.”
Staff writer Gitana Mirochnik can be reached at 253-5311 ext. 237 or gitana.mirochnik@lee.net
Citizen
Hot Jobs
New! Off the Menu
The Citizens' Say
Post your comment - click hereThere are No comments posted.