The Albany County Nursing Home has been an issue of utmost importance to me. As has been reported, my father was a resident there during the final months of his life. I was continually impressed at the deep level of commitment and care given by the staff, and that feeling remains today.
Balancing personal beliefs, experiences and opinions with the need to serve the greater good is the challenge that elected officials face. Closing the Albany County Nursing Home does not make sense to me.
Operating at a $9 million annual loss does not make sense. Building a new nursing home that is projected to lose millions does not make sense, either.
After reviewing all the options, it became clear that we needed to find an innovative solution that addresses the needs of seniors, protects taxpayers, and accepts responsibility.
We are glad to have found an operator with particular expertise running and turning around facilities that have financial troubles. I have signed a Letter of Intent with Upstate Services Group to engage in negotiations and seek approval of the County Legislature to turn over operations.
Upstate Services Group has agreed to ensure that all current residents are protected and that admission standards in the future do not change. They have also agreed to recognize the existing labor union and work collaboratively with them.
Over the next 10 years, the most conservative estimate for savings to Albany County taxpayers is $70 million. The savings is likely much higher, because costs continue to escalate each year at a much faster pace than the rate of Medicaid reimbursement.
As part of this agreement, the county will perform $3 million worth of capital improvements that are needed at the nursing home but have been delayed because of the discussion about building a new facility. These improvements will greatly enhance the physical environment for patients and staff. After 10 years, Upstate Services Group has an option for another five-year lease, or they may choose to build their own facility in Albany County.
In addition to informing the County Legislature of this proposal, we have worked diligently to let all the residents, their families and employees know at the same time. This is tied to the 2013 budget proposal that I have sent to the County Legislature.
As I stated at the beginning, tough decisions have to be made. I have proposed a balanced budget that reduces spending where responsible while balancing efficient delivery of our vital services. Knowing that every dollar counts, I submitted this budget pledging to continue to work to streamline government and create greater efficiencies without compromising or sacrificing programs and services that protect and serve the people of Albany County.
Making a responsible decision on the nursing home is part of this. I am proud to say we are on the road to recovery.
Daniel P. McCoy is the Albany County executive.