It appears Sena-Kean Manor will be sold for $3 million.
On Tuesday, the McKean County Commissioners announced they have
entered into an agreement with McKean Care Realty, L.P., for the
sale and purchase of the former county home in Smethport. The
facility is currently operated by Complete HealthCare Resources of
Horsham under the terms of a lease and purchase option agreement
with the county.
Officials said the final sale and paperwork – including the
completion of financing arrangements – likely won’t be completed
until sometime in the middle of the summer. The commissioners,
however, are slated to act on the measure during its next meeting
Tuesday.
“Complete HealthCare Resources has clearly proven its
qualifications in this field and will continue to provide superior
service and care to the residents of Sena-Kean Manor for many years
to come,” the commissioners wrote in a statement released to The
Era.
The lease and purchase option agreement was originally signed by
the county and McKean Care Realty, L.P.’s affiliate, McKean Care
Services, L.P., on March 29, 2005. The purchase price was
negotiated based on independent appraisals undertaken by both
sides.
Complete HealthCare, the parent company of McKean Care Realty,
L.P., has been operating the nursing home since May 1, 2005.
“The commissioners entered into that agreement based on the
changing nature of the nursing home industry,” the press release
states. “Specialized expertise and intense hands-on management are
required to effectively provide needed care to nursing home
residents.”
According to County Administrator Richard Casey, when the county
and Complete HealthCare signed the lease and purchase option
agreement last year, part of the accord was that the purchase
option would take place in a specified time period.
“I don’t ever think in our minds that we felt Complete
HealthCare wouldn’t purchase the home,” Casey said. “We (county)
knew it was the right thing to do all along (sell the home). We
weren’t changing our minds on that.”
Casey said it was in the last couple of months that both sides
arrived at a price and began hammering out the specific terms of
the agreement. He added it remains to be seen what the tax payments
on the property will be for the county.
The terms of the agreement were not immediately available
Tuesday. However, in January of 2005, former commissioner Tom
Causer told The Era that under the agreement with Complete
HealthCare, the county would pay $7,900 a month for services that
include, in addition to management, assistance in accounting,
training, regulation updates and evaluations, environmental
services and other aspects of nursing home business and
operation.
In addition, the county agreed to pay the salary of the
administrator provided by Complete HealthCare, county officials
said at that time.
“Currently, we are receiving a rental payment from Complete
HealthCare, as well as a payment in lieu of taxes,” Casey said.
“Next year, it will be on the tax rolls. What the assessed value of
the property will be remains to be seen. They will pay their fair
share of taxes to the county, school district and
municipality.”
Casey said both the county and Complete HealthCare performed
independent appraisals, or an objective assessment of what the
property is worth, to arrive at the $3 million figure.
According to Casey, the commissioners intend to invest the money
and leave the principal alone to produce interest income for use on
any future capital improvement projects in the county.
“There will also be money there for any collateral for future
loans which might need to be taken out for capital improvements,”
Casey said. “The money will be secure and not used arbitrarily or
to pay bills. They want to let it work for the citizens of the
county.”
Before recently, the nursing home had historically struggled and
was widely seen as a strain on the county’s budget. Complete
HealthCare was one of six companies that submitted proposals to
operate the home, and replaced Affinity Health Services of Indiana,
Pa., which had been providing the county with consulting services
since 1997.
Officials said the home, situated along U.S. Route 6, has a
total of 152 beds and employs around 130 people.
Casey said he disagreed with the perception the home was a drain
on the county’s bottom line.
“I think Sena-Kean provided a positive cash flow for many
years,” Casey said. “Only recently, with the skyrocketing cost of
health care and the nature of operating nursing homes changing so
much in recent years, has it become much more challenging and
difficult as a part-time caretaker. You really have to dedicate
yourself and resources to the details of managing a nursing home
and such a complex operation.”
When creating this year’s budget, it was the first time county
leaders didn’t have to factor in the home in regards to
expenses.
