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10/25/2006
Not our business to be in the nursing home business
Calumet County is asking voters for $4 million to (hopefully) keep the county-owned nursing home running in the black. The requested $800,000/year for five years will offset recent operating losses. The first question - how long has the Homestead Rehabilitation Center been losing money – and how much money?
Well, almost $300,000 in 2004, $532,000 in 2005 and $410,000 projected in 2006.
To Calumet County’s credit, unlike almost all county nursing homes in Wisconsin, they have not used property tax dollars in the past to help run Homestead – until 2006, that is, when an infusion of about $645,000 is budgeted to run Homestead in the black.
Lots of numbers. The second question – should Calumet County be in the business of running a nursing home?
And the third question – if Calumet County wants to be in the business of running a nursing home, should it make the tough prioritizing decisions, reducing funding in other programs so it can direct more property taxes to the Homestead Center?
The answer to the third question is a resounding yes. FoxPolitics detailed Sheboygan County’s very effective (and very rare), deliberate effort to establish program priorities so they are ready for the day funding decisions become tougher and tougher to make. It’s not the time to ask county residents to pay still more taxes, just because “this is for a good cause” (per County Supervisor Ray Brock, quoted in a recent Post-Crescent article).
The answer to the second question is a studied “no.” It’s time for the County to get out of the nursing home business.
Yes, the nursing business is tough these days. Yes, the state is putting great pressure on counties to downsize nursing homes. Yes, only little more than ½ the counties in Wisconsin operating nursing homes – it’s not like it’s a requirement. Here’s one paragraph from the county’s referendum fact sheet (read the whole thing – it’s well done).
“Is this the only County with such financial problems? Certainly not! All of our adjoining counties that own nursing homes have larger deficits than the Homestead. The problem is statewide. Currently, Fond du Lac County has announced it is closing its Rolling Meadows nursing home. Jackson County is in the process of selling its Pine View facility. Sheboygan County is discussing the sale of its Sunny Ridge nursing home. Winnebago County is building a new structure, but with significantly fewer beds. Any county nursing home with a large number of Medicaid patients is in financial trouble.”
Calumet County, you have no plan in place to solve the gap between revenues and expenses. (Again, see the fact sheet.) Running nursing homes is just not part of what you do best. You know, it’s just like General Motors (well, bad example….) or AT&T – when you have a division that’s not performing and/or no longer ‘fits’ with the rest of your business groups, jettison that division.
With all due respect to current Homestead residents, we love you dearly and we know you need Homestead. But you don’t need it owned and run by the county. Timing is just right for the county to put up the “For Sale” sign. And for Calumet County residents to vote “NO” on the Homestead referendum.
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