FOR THE FIRST TIME SINCE BECOMING PART OF NHCC IN 1999, A. HOLLY PATTERSON’S FINANCIAL POSITION IN THE BLACK
— TURNAROUND TO BOTTOM LINE CAN BE ATTRIBUTED TO EFFECTIVE LEADERSHIP STABILIZING DAY-TO-DAY OPERATIONS, IMPROVED QUALITY OF CARE, AND IMPROVED REIMBURSEMENT AT A. HOLLY PATTERSON EXTENDED CARE FACILITY
East Meadow, NY….Arthur A. Gianelli, president/CEO of the Nassau Health Care Corporation (NHCC) announced that, for the first time in the 93 months since the creation of the NHCC in September of 1999, the A. Holly Patterson Extended Care Facility (AHP) closed with a small surplus in July of 2007 This positive financial result is significant because it caps a multi-year turnaround effort that has intensified in the past two years, during which a series of reforms had already reduced AHP’s losses from $7 million in 2005 to $2.5 million in 2006.
“This is encouraging news for the NHCC and a major milestone in the financial turnaround of the Corporation that can be credited to effective leadership under Larry Slatky, Senior Vice President for AHP and his entire team, who have worked diligently to improve the quality of care, control expenses, stabilize the day to day operations, and enhance reimbursement to this very important facility” said Mr. Gianelli.
The turnaround at A. Holly Patterson can be attributed to the following items totaling approximately $11M annually which includes a disproportionate share adjustment of approximately $600,000., increasing to $5M in 2009.
1. AHP successfully received hospital-based status from the New York State Department of Health effective July 1, 2006 that generated approximately $5.5 M annually in additional Medicaid revenues.
2. AHP decertified 300 skilled nursing facility beds at the end of 2006 bringing the complement of beds from 889 to 589 beds. That decertification, combined with the nursing home’s current population at 580 residents, places AHP at 98% occupancy and makes it eligible for bed hold reimbursement of approximately $1.2 M per year.
3. An increase in AHP’s case mix index (severity of illness of residents) has yielded an additional $1.2 M per year.
4. The census has risen from 550 to approximately 580, with the facility even hitting capacity last month, generating an additional $2.5M in revenues, with outside referrals doubling since 2006.
The turnaround at AHP was accomplished in spite of reductions of approximately $8M in annual disproportionate share payments over the last five years, as well as 2007-2008 New York State budget cuts totaling $720,000. This turnaround, along with the Berger Commission mandate to rebuild AHP, make it possible for NHCC to carry out its long term strategic plan of replacing the current AHP facility with a brand new nursing home facility and selling the acreage around the facility for the development of assisted living, congregate senior living, independent senior housing, some small commercial enterprises, and common space for community enjoyment..
Mr. Slatky praised his staff at AHP for the encouraging news: “This turnaround is not about one person but was achieved by the entire staff working together with the common goal of achieving financial stability and improving the quality of care provided to all of our residents.”
Mr. Gianelli concluded by stating: “While we recognize that a $6,000 profit for one month is very small, it represents the outcome of years of effort to change the nursing home’s quality of care and operational efficiency, bringing it from the brink of closure to essentially break-even status today. Even greater benefits will follow when we construct a new facility.”