Seniors Housing Weekly Update -- Some County-Owned SNFs Just Need To Be Sold

November 19, 2013

November 19, 2013. 60 Seconds with Steve Monroe. When they lose a million dollars or more a year, even unions don't have a good excuse to keep them in government-owned hands.

Some County-Owned SNFs Just Need To Be Sold

We have written a lot about county-owned skilled nursing facilities being for sale, and some of the controversy that these sales cause. Usually these facilities are losing money, often a million dollars or more each year, that are funded by the county either through additional taxes or higher deficits. These sales are often a win-win because not only does it remove the need for deficit financing, but the sale also generates a substantial amount of cash for the county to be deployed elsewhere. The downside is that some of the employees end up losing their jobs, and those remaining often end up with lower salaries and benefits. The problem is that with a few more years of losing that amount of money, they could all be without a job. In Ontario County New York, the local labor union filed a lawsuit to try to block the sale of a county home to a private company, Specialty Care Group. Fortunately, the New York State Supreme Court dismissed the lawsuit, but the union may appeal. The same buyer won a court case in a different New York county-owned facility, and it looks like they will prevail again. While it may feel good to have a facility owned by the county, if they can’t run it without losing money, we don’t see the unions forking over the necessary dough.



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