Homestead future worries residents and workers

SUSSEX COUNTY — The Sussex County freeholders are moving forward with the sale of the Sussex County Homestead Nursing Home in Newton. Marcus & Millichap, a real estate firm specializing in nursing homes has been authorized to handle the sale of the property. In an effort to curtail future financial losses, many counties are taking a look at privatizing nursing homes. “This is not just a New Jersey issue; it is nation wide in Ohio and New York to name a few. It’s a function of a steep decline for local government revenue starting from 2008 and an uncertainty of Medicaid/Medicare provisions,” said John Eskilson, Sussex County Administrator. “The decision to advance the sale was a result of about six months of analysis.” But not everyone agrees this is best for the nursing home or its residents. Save the Homestead is a grassroots organization dedicated to preserving the home of 102 senior citizens, founded last July by Linda Hunter-Conklin, a 66-year old resident of the home. Her co-chair is Ray Witte, whose mother-in-law also resides there. On Monday evening, the freeholders held the first of two public hearings required by law to move forward with the resolution. In order to accommodate the residents that came from the Homestead, the meeting was opened by the freeholders at 5 p.m. at the Frankford Municipal Building and immediately moved to recess and reconvened to the larger Sussex County Fairgrounds Conservatory building at 5:30 p.m. Over 150 people attended. “The hearing went well. A lot of people brought up different topics and the financial issues as well,” said Hunter-Conklin. “But there is a moral issue here: the fear of selling is that we are family here — the aides and the residents. It’s like forcing us into a divorce.” She went on to tell the freeholders that the county should have a right to vote whether the Homestead gets sold or not. By the numbers With 108 full-time and 30 part-time employees, the facility costs $10 million to operate. In 2010, it suffered a $1 million loss based on Medicaid accounting structure. In 2011, the net loss was only $80,000. Although it seems like the economics were improving, Eskilson explains: “There was a salary freeze in 2011 and savings in health benefits came in after the first of the year. The projected deficit for 2012 is tracking at about 2.5 million. Salary increases have come into place and the anticipated widening of the gap and severe cuts in Medicaid.” The monthly tracking is posted and available on the Web at the www.sussex.nj.us site. The county is feeling the pinch of a state cut of $400,000 that was retroactive to July 2011. “We are seeing such steep losses in the first quarter. All of these processes are running concurrently; if it were going to final sale it would be late October or November,” said Eskilson. Early projections estimate the sale could be anywhere forms $8 to $12 million. “A Cumberland County nursing home which is twice the size sold for $14 million. In addition to the money the county gets from the sale, it becomes a ratable for Frankford Township,” he said. Residents and workers may have no where to turn “Nobody here tonight is in favor of selling it,” said Witte. “This is one of the few places built by Sussex County residents with Sussex County materials for Sussex County people. It has been in operation since 1832 originally operating as a working farm. As a nursing home, it caters to low and moderate income people. If it goes private, there will be a lot less beds for Medicaid.” And one of the main concerns is the employees. “Approximately 150 people attended — it’s a very good turnout,” said Patrick Kavanaugh, President of Communication Workers Association (CWA)1032, the union representing the Homestead employees. Helen Grant who is a resident attended and spoke: “I am not sure where I would go. Barn Hill is nice but very expensive." All of the freeholders listened attentively and the information was recorded and will be published on the county Web site. “Public hearings are part and parcel of a major resolution. It is an opportunity for comments from people to be part of the public record,” said Freeholder Director Phillip Crabb. “There was no information tonight that we haven’t looked at length at. We have done an exhaustive analysis, but it is incumbent for this board to determine what’s best for the county.” "This is a good opportunity to hear the concerns of the residents, taxpayers and employees of the Homestead, and we appreciate their candor," said Freeholder Rich Zeoli. “The process is moving along. There are 150,000 residents in the county. And there are also lots of people who support the sale who are not here tonight.” Not giving up easily Meanwhile Hunter-Conklin and her supporters continue to plug away in what has become a contentious issue within the county. In the past year, Save the Homestead has gathered over 10,000 signatures in opposition of the potential sale. Representatives from the group are presently visiting all 24 municipalities appearing before councils to show their opposition and get a non-binding referendum on the November ballot. “Can’t and quit are not part of my vocabulary,” says Hunter-Conklin. But in the end, the five elected freeholders hold the purse strings. Next meeting The next public hearing is on May 23 a 5 p.m. at the Sussex County Administrative Center, One Spring Street in Newton.