SUNBURY — Northumberland County taxpayers will see tax cuts starting next year, as county commissioners on Tuesday promised to use 100 percent of the proceeds from the sale of Mountain View Manor to reduce the county's long-term debt.
On a recommendation from the Northumberland County Authority, owner of the county nursing home, the commissioners voted unanimously to enter into a lease-purchase agreement with Complete HealthCare Resources to sell the skilled nursing facility for $16.5 million.
On Tuesday, 186 of the facility's 271 beds were occupied, and employment stood at 250.
Complete HealthCare has operated Mountain View Manor under contract for the past 14 years.
"This is a win-win-win-win for all the parties," said Commissioner Vinny Clausi, who negotiated the sale. "We wanted to be sure the taxpayers didn't get burned again. It will cut taxes in half starting in 2010."
The sale of the Coal Township nursing home will shrink the county's operating budget by $14.2 million in 2010, from $85 million to $71 million, Clausi said. The county tax rate of 21.735 will be reduced by more than 3 mills, the commissioners said.
"This is a bonus for the taxpayers," Commissioner Kurt Masser said. "We've paid for it (the nursing home) over and over again.
"It will no longer be a place for paying political favors," he said in reference to previous commissioners offering nursing home jobs to repay political debts.
A $10.5 million loan taken out by former Commissioners Alan Cwalina and Charles Lewis, using the home as collateral, has been rolled into the county's long-term debt.
Commissioners Chairman Frank Sawicki said the county's debt will actually be reduced by $19.3 million. In addition to the proceeds from the nursing home's sale, the commissioners have also refinanced bonds and debt, yielding the additional savings.
Under terms of the agreement, the county will receive $1.5 million per year over the next 11 years.
Complete HealthCare has also agreed to provide continued care to current residents as long as they qualify for nursing home care, and will continue to participate in Medicare and Medicaid, maintaining a minimum Medicaid mix of 65 percent for residents.
In addition, admission priority will be given to Northumberland County residents, and hiring priority to county residents.
Clausi choked up as he described his work at the facility over the past 18 months, noting that he took office believing that the county should keep the facility, but eventually realized Northumberland County should not be in the nursing home business.
"This was a very difficult decision," he said, his voicing cracking with emotion. "But it is in the long-term benefit for the taxpayers of the county."
Complete HealthCare will honor the current union contract and the company volunteered to pay taxes, Clausi said.
"I believe the employees will be better off in the private sector," Clausi said.
Masser and Sawicki gave Clausi credit for negotiating the sale.
"We got a great, great deal," Masser said. "The county doesn't belong in the health care business."
After thanking Clausi, Sawicki said the Shamokin Area School District should realize $26,000 in additional tax revenue from the sale, while Coal Township will gain an additional $14,000.
Peter Licari, president of Complete HealthCare, said the company has converted a number of county-owned nursing homes to private ownership since its founding in 1989.
"This will be our 14th conversion," he said. "Every one has worked well."
He said the reimbursement rate for private operators is better than for county-owned facilities. He also said the company has experience negotiating with unions, because all but one of its operations is unionized.
"My pledge to you is that we'll continue what we've done for 14 years here," he said. "It was the right combination of factors that made this work."
-- E-mail comments to wlaepple@dailyitem.com
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Northumberland County sells nursing home for $16.5M
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