Health care facility on mend
BY MARY PERHAM THE LEADER

BATH - The fiscal health of the Steuben County Health Care Facility is showing signs of recovery, according to an independent audit of the 40-year-old nursing home.

"It has shown a very nice improvement," said Richard Lipmann, of the accounting firm UHY. "When the new home opens you could even inch your way to break even."

Lipmann told the county Legislature's Health and Education Committee the facility took in more money last year because of an increase in private patients, state grants and new rehabilitation services.

According to the report, the facility lost $105,070 in operating expenses in 2006, compared to a deficit of $423,140 reported in 2005.

The report was the first real indicator of financial stability for the 105-bed county home, which faced an uncertain future several years ago when the deficit drained the facility's $10 million reserve down to roughly $7 million in two years.

Officials blamed the deficit on the increasing cost of care coupled with low state payments. In 2002, legislators halted plans to build a new facility in favor of looking for a buyer, but rejected one low bid a year later.

Legislators then approved building the new $19 million facility, which will paid for largely by the state and receive higher state payments for care.

Revenues in 2006 increased by 6 percent while operating costs dropped due to changes in prescription programs and a decrease in worker's compensation payments.

Committee Vice Chairman Robert Nichols said the new facility will include "no-lift" equipment which should further reduce worker's compensation when the home opens early next year.

The chief concern for auditors was the on going problem the facility has in collecting payments.

Some 40 percent of payments owed to the facility last year were not collected until after the typical 30-day to 60-day payment period, Lipmann said.

There has been some improvement since a 2004 audit showed the facility had 70 percent of its payments 90 days late, Lipmann said.

STEUBEN COUNTY HEALTH CARE FACILITY OPERATING DEFICIT

2003 - $2.2 million
2004 - $1.6 million
2005 - $423,140
2006 - $105,070