Dateline: September 27, 2007

Medical Center Nursing home put up for bids

The Medical Center Nursing Home is for sale following action taken by the Donley County Hospital Board at its September 18 meeting.

A legal notice in this week’s Enterprise calls for bids on the property to be submitted by October 22 at 1 p.m.

Board President Alan Fletcher said Monday he thinks this is the best solution for the hospital district, which is facing rising expenses.

“I don’t think we can raise taxes enough to keep it,” Fletcher said. “My concern is that we keep our emergency services alive, and we’re mandated to provide indigent care.”

Fletcher said appraisers have valued the nursing home at between $700,000 and $800,000. He also said there is a buyer for the property, but he would not identify that person.

“I think he would like to make an announcement and meet with the community and the staff first,” Fletcher said.

The board is still moving forward with plans for a $200,000 eight-bed expansion of the nursing home, which goes to bid next week. Fletcher said the expansion is necessary to increase the potential revenue of the facility and make it more attractive to buyers.

The sale will include the Community Services Building and most of the undeveloped property at the Medical Center Campus. The district would retain ownership of the Associated Ambulance Building and approximately six acres along the south side of the property. The adjacent Clarendon Family Medical Center is privately owned.

According to the bid notice, the potential buyer of the property must agree to honor the current leases for space in the Community Services Building and must continue to operate MCNH as a long-term healthcare facility for at least five years.

“We want to make sure this service is still provided to the community,” Fletcher said.

MCNH officials say the nursing home is still in good condition financially but say challenges are ahead as expenses rise and income remains stable. The home’s budget for this year shows a $5,000 surplus, but Fletcher says increases in the minimum wage will cost the district between $45,000 and $50,000.

Fletcher said a private owner running four or five nursing homes would be able to devote more time to increasing Medicaid reimbursements. A private owner would also be able to share a physical therapist among several facilities, he said.

Physical therapy service brings in more money, but MCNH has been unable to hire a therapist or even contract with one affordably.

Fletcher said if the nursing home is sold, the proceeds of the sale would go into an escrow account to help pay off the district’s bonded indebtedness. Currently, bonds will be paid off in 2022; but with the sale of the nursing home, they could be paid off as early as 2011.

But sooner than that, Fletcher said his goal would be to eliminate the personal property tax. And long-term he thinks it would be “ideal” for the county or the city to take over the ambulance service and for the county to assume responsibility for indigent care.