Provided photo – The Villages of Orleans Health & Rehabilitation Center has this sign along Route 31 in Albion.

Press release
Orleans County Health Facilities Corporation

ALBION – The Orleans County Health Facilities Corporation announced on Thursday that The Villages of Orleans Health & Rehabilitation Center has been acquired for $7.8 million.

Principals of Comprehensive Healthcare Management Services LLC, who recently purchased three Catholic Health facilities in Buffalo, will eventually operate The Villages under Comprehensive at Orleans LLC.

Orleans County Health Facilities Corporation board members Richard DeCarlo Sr., Russell Martino and Richard Moy stated, “The sale of The Villages to Comprehensive will not only allow for continued excellent care of our residents but will also provide additional annual tax revenues for the county, town and school district.”

The Villages operating debt is expected to be reduced to $7.1 million by the end of 2014. This purchase agreement will more than satisfy the outstanding debt and “exceeds the market value of $6.5 million suggested by the senior housing specialists we consulted at Marcus & Millichap,” added Martino, chairman of the HFC, which is a local development corporation.

He also emphasized, “Comprehensive showed considerable flexibility in negotiations with regard to our county’s unique needs. This is a win-win for our community.”

The principals for Comprehensive – Joshua Farkovits, Bernard Fuchs and Mordy Lahasky – will now face a rigorous New York State Department of Health licensure process to operate the 120-bed nursing home in Albion.

Once the review is complete and approval is granted by the state, which could take up to a year, The Villages of Orleans will become a privatized nursing facility owned and operated by Comprehensive at Orleans LLC. County officials indicated no transfer would take place prior to Jan. 1, 2015.

While change of ownership can create angst for residents, their families and employees, Lahasky indicated he and his partners were immediately “…very impressed by the facility and, more important, by the people at The Villages of Orleans, staff and residents alike. The Villages is a gem – it is clearly a well-run facility and we intend to keep it that way. Our aim is to provide even more support and enhance the services offered at the facility.”

“We are committed to providing high quality health care and a quality workplace for employees,” said Farkovits. He added Comprehensive’s principals have “long standing and good working relations with 1199 of the SEIU and a history of working with existing employees to achieve outstanding outcomes.”

The company looks forward to working with the workforce in Orleans County because they have demonstrated “such dedication” to caring for residents of The Villages and “so much pride” in the facility and region.

Members of the LDC requested the purchase agreement state that current employees hired by Comprehensive “will not be subject to salary cuts or reduced Paid Time Off (PTO).”

Noting that a NYS DOH study projects the county’s need for more nursing home beds will reach 360 by 2016, Legislature Chairman David Callard said, “Under the leadership of Comprehensive, we are more optimistic that the needs of our community can be met, well into the future. I am pleased with the way the LDC managed the process and look forward to a smooth transition and fiscal solvency for Orleans County.”

“First impressions are everything to me,” said Karen Wygal, director of nursing at The Villages. “Their facility that I toured was pristine. To me, that is an indicator as to how well the needs of the residents are being met. The staff was welcoming and very engaged with the residents. The high level of care demonstrated in the specialized units was extremely impressive.”

The privatization of The Villages brings back into focus mounting challenges for county-owned nursing homes all over in New York State: rising costs and the increasing costs of public employment.

“Even with reforms and the addition of programs, costs have continued to increase at an alarming rate, while Medicare and Medicaid reimbursement levels failed to keep pace,” Callard said.

LDC member Richard DeCarlo Sr. said, “We could not, in good conscience, allow this to go on. Comprehensive was no stranger to these concerns, having worked with other county-owned nursing homes, and they were accommodating to our needs. Comprehensive committed to maintaining ownership of The Villages for a minimum of 10 years.”

The Chicago-based firm of Marcus & Millichap was hired to market and sell The Villages. Senior housing specialist and broker Joshua Jandris said, “Comprehensive’s reputation exceeds industry standards.”

He went on to say Farkovits, Fuchs and Lahasky “…showed tremendous interest in the residents and the community and were also very attentive to the specific needs of the county.” Jandris added that the men are respected nursing home operators and are known for investing in their employees and supporting the operational needs of each facility.

Richard Moy of the LDC expressed the same sentiments about Comprehensive. Moy observed, “They all seem to be committed 100% to the success of their facilities and particularly invested in the communities. In fact, they willingly agreed to continue the nationally-recognized Community-as-School program as well as provide meals for Orleans County Hospice.”

According to Farkovits, “Our desire is to augment the existing programs at The Villages and add more specialty services to cater to the growing needs of the community. We plan to enhance the health care options for the residents in and around Orleans County.”

Martino, Moy and DeCarlo also believe Comprehensive has a proactive approach to “optimizing the facility’s potential.”

Both parties were motivated to work out the terms of Comprehensive’s offer. Lahasky made it clear throughout the process, “We will do whatever needs to be done to make sure each resident has the benefit of the all the assets and unique specialty services that Comprehensive has to offer. Simply put, we are confident that together we will all be able to continue to serve the people of Orleans County – quite well.”

Provided photo

Albion Mayor Dean Theodorakos pulls the winning ticket this afternoon for a county employee who dressed in red as part of National Go Red Day. Nadine Hanlon, clerk of the County Legislature, holds the basket full of tickets.

Orleans County employees raised $865 by paying $5 each to wear red to promote awareness about heart disease.  Each employee that participated was eligible in a drawing for a $50 gift certificate for a night out.

Mayor Theodorakos pulled the winning ticket for a $50 gift certificate to Albion’s Crooked Door Tavern. Jim Noreck, assistant superintendent of the Buildings and Grounds Department, was the winner.

All proceeds will be donated to the American Heart Association to help the ongoing research to eliminate cardiovascular diseases and stroke, the country’s No. 1 and No. 4 causes of death, respectively.

Photo by Tom Rivers – The Villages of Orleans Health and Rehabilitation Center, a county-owned nursing home since 1960, has been acquired by Comprehensive Healthcare Management Services LLC for $7.8 million.

ALBION – It’s been a long-dreaded day that supporters of the county-owned nursing home hoped wouldn’t arrive. The Villages of Orleans Health and Rehabilitation Center was sold today for $7.8 million to Comprehensive Healthcare Management Services LLC.

The new owner likely won’t take over until next year. It needs to get through the certificate of need review process by the state Department of Health. That usually takes 12 to 18 months.

“I am bitter because it’s too bad,” said Gary Kent, one of the leaders of Concerned Citizens of Orleans County, a group that fought the sale. Concerned Citizens tried to stop the sale through a court fight, public protests and the recent county election.

Kent believes the county owes it to its seniors to maintain a quality nursing home with dedicated employees. He worries the quality of care could suffer under private ownership.

Kent, a former county legislator, said the $7.8 million price was “ridiculous” given that the county spent more than $10 million on a renovation and addition in 2007. It also added a wing in the mid-1990s that Kent said is “just like new.”

That price exceeded the $6.5 million market value set by the county’s consultants, Marcus and Millichap’s National Senior Housing Group in Chicago. The price also will allow the county to pay off the $7.1 million in debt left on the nursing home following renovations and an addition in 2007.

“It’s a really good deal with a really reputable company,” said Legislature Chairman David Callard.

Comprehensive Healthcare Management Services recently bought three nursing homes in Buffalo that were owned by Catholic Health Services. Comprehensive also owns a site in Albany.

County officials toured the Albany site and one of the Buffalo nursing homes. The group was impressed by the investment in the facilities.

County Chief Administrative Officer Chuck Nesbitt went on the tours with Karen Wygal, director of nursing at the Villages. They were joined by Russ Martino, Richard Moy and Richard DeCarlo Sr., all members of the Orleans County Health Facilities Corporation.

The County Legislature last February voted to transfer the nursing home to the Health Facilities Corporation, a local development corporation formed to sell The Villages.

The group is pleased with the sale price, said Martino, the group’s chairman.

He also praised the company for agreeing to allow space at the nursing home to continue to be used for an alternative school program at Albion. Comprehensive also will keep an existing agreement to prepare meals for the Hospice of Orleans residence.

Comprehensive principal owners include Joshua Farkovits, Bernard Fuchs and Mordy Lahasky. They have ownership stakes in other nursing homes besides the ones in Buffalo and Albany.

The new owners acknowledged the change of ownership can be upsetting to some residents, their families and employees. Lahasky said he and his partners were immediately “…very impressed by the facility and, more important, by the people at The Villages of Orleans, staff and residents alike. The Villages is a gem – it is clearly a well-run facility and we intend to keep it that way. Our aim is to provide even more support and enhance the services offered at the facility.”

Comprehensive, as part of the 45-page agreement signed today, agreed to own the site for at least 10 years. It also pledged not to reduce employee wages.

Cindy Troy, president of the CSEA union, worries about the employees and the residents of the county nursing home.

Troy expects benefits will be cut to employees, leading to more turnover and diminished care for residents in the 120-bed nursing home.

“I’m really concerned, not just for the employees but for the community,” Troy said this afternoon after the county announced the sale. “I’m worried about whether we’ll have a stable workforce. You don’t have a good nursing home if you don’t have a stable workforce.”

The new owners didn’t specify whether workers would see a reduction in healthcare or retirement benefits. County officials have cited employee benefits as a prime driver of operational costs – and deficits at the site.

The nursing home employs about 125 workers. They currently are eligible for the state retirement system.

The sale will reduce the county’s overall workforce by about a third. Kent, the former legislator, said the seven-member county Legislature should cut its pay by least 25 percent when the sale is final.

“Their workload will be down,” he said.

Kent has disputed many of the numbers put out by the county about the deficits at the site.

County officials have said deficit have topped $2 million in recent years. It was listed as a $825,000 deficit on the 2013 county tax bill. Callard and county officials feared the nursing home could require a $4 million or more in county contributions in the future due to shrinking federal aid.

Richard DeCarlo, one of the LDC board members, said those deficits would be too much for county taxpayers.

“We could not, in good conscience, allow this to go on,” he said.

The new owner brings expertise and resources to the site, Callard said. The sale preserves the nursing home as a resource for years to come, he said.

“I have great expectations,” Callard said. “I think you’ll see capital investment and innovative ideas.”

ALBION – The county-owned nursing home has been sold for $7.8 million to a company that recently purchased three Catholic Health facilities in Buffalo.

Comprehensive Healthcare Management Services LLC will be the new owner of The Villages of Orleans Health and Rehabilitation Center, a 120-bed nursing home on Route 31. The final approval for the sale will come after the state Department of Health reviews the company’s certificate of need. Those reviews often take at least a year.

The sale won’t become effective until after Jan. 1, 2015. That will honor the time frame put out by the County Legislature about two years ago when it told the public and nursing home employees the site would stay county-owned until at least 2014, Legislature Chairman David Callard said this afternoon.

He is pleased with the price, which exceeds the $6.5 million market value set by the county’s consultants with the sale, Marcus and Millichap’s National Senior Housing Group in Chicago. The price also will allow the county to pay off the $7.1 million in debt left on the nursing home following renovations and an addition in 2007.

“It’s a really good deal with a really reputable company,” said Legislature Chairman David Callard.

Orleans Hub will have more on the sale.

ALBION – A group tasked with finding a buyer for The Villages of Orleans, a 120-bed nursing home in Albion, could decide today which company will be the new owner.

The Orleans County Health Facilities Corporation, a local development corporation formed last year by the County Legislature, will meet today at 1:30 in the legislative chambers of the County Clerks’ Building, 3 South Main St.

The three-man board of directors will go into executive session to discuss a purchase agreement for the county-owned nursing home.

The group is considering more than price, LDC chairman Russ Martino has said. The board wants the new owner to work with Albion Central School to continue an alternative education program at the site. At-risk students at Albion take classes at the nursing home and do an internship or job shadowing with staff.

The nursing home also currently prepares meals for residents at the hospice residence down the road. Martino wants that partnership to continue.

The LDC and county hired Marcus and Millichap’s National Senior Housing Group, a Chicago firm that specializes selling nursing homes. The firm helped find purchase offers and is working with the LDC on the sales agreement. Marcus and Millichap will get a 2.5 percent commission as its fee.