Report: Saratoga County's nursing home, Maplewood Manor, is financially unsustainable
Published: Tuesday, August 14, 2012
By PAUL POST
ppost@saratogian.com
Twitter.com/paulvpost
BALLSTON SPA — The county should find out what Maplewood Manor is worth and then decide whether it wants to stay in the nursing home business.
That’s one of the key findings in a detailed 150-page report presented to supervisors on Monday about the 277-bed facility that is putting a huge drain on county finances.
The study, “Maplewood Manor: Current Assessment and the Future,” says the Ballston Spa facility is needed, but no longer sustainable under its current business model.
“Maintaining the status quo is not a viable option,” said the report, which the county authorized in March. The $50,000 study was prepared by Harris Beach PLLC and the Arthur Webb Group.
The county could pay for the nursing home by raising taxes 20 percent or laying off 35 percent of the facility’s workforce — 120 employees. But neither option is recommended and the county’s contract with the employees’ union greatly limits layoffs and reductions, especially among senior personnel who typically make the most money.
The current collective bargaining agreement expires at the end of this year, but terms of the existing contract remain in effect until a new one is reached. The report says the county should consider “working with the union to reduce contracted levels of wages and benefits.”
At present, fringe benefits equal 68 percent of payroll expenses. In two years, however, such costs will total 90 percent of wages.
Negotiating with the union to reduce salary and benefits would have minimal impact on a deficit that’s expected to grow from $9.8 million this year to $11 million in 2014, and continue increasing because of future state and federal healthcare policies, the study says.
The county has already imposed a hiring freeze to stem the fiscal bleeding. Maplewood Manor has received more than $35 million in county subsidies since 2004.
The report’s author, Arthur Webb, said selling the nursing home to a private firm should not lessen the quality of care, which he said is mandated by federal regulations and practical considerations, such as the large number of local residents it serves. Continued...
Eighty-six percent of residents are from Saratoga County. However, 83 percent of residents are also paid for by Medicaid that only pays $160-per-resident per day, leaving the county to pick up the $157-per-resident daily deficit.
“We’ve really reached a point where financially we can’t provide the subsidy we have in the past because we don’t have it any more and it’s growing,” county Administrator Spencer Hellwig said.
The report cited a clear need for a nursing home. The state Health Department says 1,004 beds are needed in Saratoga. At present there are 789.
The study found that Maplewood Manor, which opened in 1980, is well-run with a “Four Star” above-average rating based on federal standards.
Financially, however, the county can simply no longer afford it, meaning tough choices are in store for county officials. Monday’s presentation was heard by the supervisors’ Public Health Committee.
The full board must now review the document and decide on a course of action.
“You have a valuable asset,” Webb said. “We think it’s critical that you find out what it’s worth.”
The full report is expected to be posted soon on the county’s website,
http://www.SaratogaCountyNY.gov
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