An Illinois management company, acting on behalf of a new, unidentified Nebraska-based entity, submitted the lone proposal to buy the county-owned Lancaster Manor nursing home, officials said this wee
ALGIS J. LAUKAITIS / Lincoln Journal Star | Posted: Thursday, July 9, 2009 12:00 am
An Illinois management company, acting on behalf of a new, unidentified Nebraska-based entity, submitted the lone proposal to buy the county-owned Lancaster Manor nursing home, officials said this week.
"They (Hunter Management) are the bird in the hand," Lancaster County Purchasing Agent Vince Mejer said.
But neither he nor Avi Rothner of Hunter Management would identify the Nebraska entity the company is working with.
"We have had no negotiations with Hunter Management at this point or with anybody," Mejer said Wednesday.
Rothner, who has toured the 293-bed county-owned nursing home at 1001 South St., did squelch rumors that Homestead Nursing & Rehabilitation Center, at 4735 S. 54th St., was the potential buyer.
He said Hunter Management has some vested interest in Homestead, but Homestead "was never really in the picture."
Hunter Management, headquartered in Evanston, Ill., is a family-owned business that provides management, financial advice and consulting services for a variety of companies.
When the board requested proposals to manage, buy or lease Lancaster Manor, Hunter Management submitted two - one to lease and one to buy the manor, Mejer said.
Mejer, a member of a subcommittee that is coming up with "discussion points" on the potential sale of the manor, said talks won't start until the subcommittee gets direction from the County Board. In addition to Mejer, the other members of the subcommittee are: Kerry Eagan, the county's chief administrative officer; Budget Director Dennis Meyer; and Chief Deputy County Attorney Mike Thew.
"Preliminary discussions are focusing on the potential sale to one party," Eagan said.
Four other entities responded to the board's request for proposals, but the Hunter Management proposal was the only one to buy the nursing home. The board received one resume from a person interested in managing the home.
Eagan said the subcommittee will give its first report to the County Board on Thursday, but in executive session - closed to the public - because the matter involves the potential sale of property.
He said there is no timeline for reaching a decision, and discussions with a potential buyer could take awhile.
On June 25, the County Board voted 4-1 to begin negotiations to sell the home, which it has operated since it opened in 1970. Commissioner Larry Hudkins opposed the sale.
Financial reports indicate the manor has been on a roller coaster pattern of running in the black and red since last summer. Losses have ranged from $351,000 in September to $299,000 in January.
There have been some recent good months, but an advisory committee has issued a report saying the manor could lose $3.5 million next fiscal year.
Kim Kaspar, president of the union that represents the manor's 354 employees, said the union is still working on a plan to oppose a sale to a private entity.
"The quality of care is going to be reduced," Kaspar said. "I honestly feel there will be a reduction of staff and pay and benefits."
Hudkins has steadfastly maintained the manor's problems could be solved with a qualified, experienced administrator. At the June 25 meeting, he made a motion to hire someone but it failed for lack of a second.
Said Eagan: "My personal view is we have a qualified administrator at this point. Gwen (Thorpe) has done a superb job at the facility."
Thorpe, the county's deputy chief administrative officer, was appointed interim administrator in November when administrator Ron Fetters resigned.
Hudkins has criticized Thorpe's job performance at staff meetings and has been steadfast in his resolve to appoint a new administrator and keep the nursing home in county hands.
Hudkins believes the other commissioners want to sell the manor because they are worried the federal government will reduce its Medicaid reimbursements -on which the manor relies heavily for income - and that taxes will be necessary to keep it running.
"I'm not scared of that. In America, we don't put people on the streets," Hudkins said in an interview.
County Board Chairman Bernie Heier said he doesn't know what the federal government will do, but said the vote to proceed with a potential sale was based on good business sense.
"We have a potential to lose $3.5 million and it's not good for us and not good for the manor," he said. "We're still looking at perhaps a strong deficit and that should be a concern to every taxpayer in Lancaster County."
Heier said he understands there are many emotions involved in the issue but as an elected official he has to look out for all county residents.
Hudkins, the board's liaison to the manor from 1987 until earlier this year, listed the following reasons for keeping the manor in county hands:
* The facility is paid for.
* If operating funds are needed, the county board could issue bonds.
* The county does not have to pay property taxes on the building and site.
* The county does not have to show a profit like a private company.
Reach Algis J. Laukaitis at 473-7243 or alaukaitis@journalstar.com.