Firm says Horace Nye could be profitable again

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Adam Garff, Traditions Management vice president of Development

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September 2, 2010

By LOHR McKINSTRY Staff Writer The Press Republican Thu Sep 02, 2010, 06:14 AM EDT

ELIZABETHTOWN — The Florida firm that wants to run Horace Nye Nursing Home says it can cut costs while still providing quality patient care.

In a presentation to the Essex County Board of Supervisors this week, Vice President of Development Adam Garff said his company, Traditions Management of Clearwater, Fla., would move quickly to assume control of Horace Nye if the county gave the OK.

"I'd have a team of people meet with the administration, meet with the staff. We'd give you recommendations in seven days."

ONLY BIDDER

Traditions Management was the only firm to submit a bid after the county issued a request for proposals to take over or purchase Horace Nye.

County leaders say they can't continue to support mounting deficits of more than $2 million a year at Horace Nye.

Garff said the issues at Horace Nye are found at nursing homes throughout the country.

"There are deficits far and above what we are seeing at your facility here. We own or manage 12 nursing homes throughout the country. We have an excellent cooperative team that oversees our operations."

Supervisor Thomas Scozzafava (R-Moriah) asked Garff how many of those 12 facilities operate at a profit.

"As of today, every one of them," Garff said.

His firm has proposed running Horace Nye for 5 percent of its annual revenue of $6.6 million, which is about $25,000 a month.

UNION STAFFING

Employees at Horace Nye belong to the Civil Service Employees Association, and a county survey showed they are paid much higher wages than workers at private nursing homes.

"Typically, with unions, you have wages out of the norm and overstaffing," Garff said.

"When you add more staff, it doesn't necessarily guarantee better care. Efficiency and quality care is more valuable."

Horace Nye has about 150 full-time equivalent employees, but the industry average is 100 to 120 employees for a 100-bed facility.

"Our proposal would simply be that in nursing homes there are so many moving parts and so many ways we can improve things and make things work better," Garff said. "We would use all our collective resources at the home."

He said they operate nursing homes in Florida, Iowa, Illinois, Virginia and Missouri, including two with union contracts.

"Our experience with unions has been positive. Generally speaking, we can get along with the union and get an agreement that's beneficial."

AIM FOR MORE MEDICARE

He said they'd try to attract more short-term Medicare patients, since that rate of reimbursement is much higher than Medicaid.

Horace Nye is now 95 to 97 percent Medicaid-reimbursed, which county officials say doesn't cover the actual cost of care.

Garff said their contract with the county to run the nursing home would be month to month, with a 30-day cancellation notice for either party.

"We were in a similar situation at the last home we turned around, and it takes daily, precise management. We have done this before, with facilities that have been losing millions a year. We turned them around to at least break even, if not make money."

RESPECT

Horace Nye Administrator Deborah Gifford said she wanted to be sure Traditions Management "would respect the philosophy and honor of the building. That is a reflection of our environment."

Garff said they'd work with the existing staff and operate the facility the way it's been operated.

"We're going to make your work easier and bring in a world of experience. Our goal would be to bring your expenses down."

He said it would take 12 to 18 months to make the changes that would move Horace Nye into the black.

Scozzafava said the next step will be to get a formal proposal from Traditions Management on Horace Nye.

E-mail Lohr McKinstry at: lmckinstry@pressrepublican.com