Michaud Residential Health Services in Fulton to Close in the Face of Insurmountable Financial Challenges

by Contributor | July 5, 2017 1:57 pm

FULTON – Officials at Michaud Residential Health Services, an eighty-nine bed nursing home located in the city of Fulton announced that they are pursuing a plan to cease operations and close within the year.

The New York State Department of Health has reviewed and approved a comprehensive plan of closure submitted on behalf of Michaud Residential Health Services. The Department of Health approved plan of closure includes a targeted closing date on or about October 1, 2017.

Michaud officials have begun the process of notifying residents and their families, staff and community partners of the decision to close the facility.

Read Letter To Community Partners from Terrence Gorman CEO on Behalf of the Board of Directors of Michaud Residential Health Services here[1]

St. Luke Health Services purchased the Andrew Michaud Nursing Home from the County of Oswego in November 2005 and Michaud Residential Health Services has operated as a not-for-profit provider of skilled nursing and short-stay sub-acute rehabilitation for the last eleven years.

“We have seen a steady decline in nursing home bed census county-wide for the last few years due to a number of factors, and we do not believe that this trend will change in the future,” said Greg Osetek, spokesperson for the organization. “In this time Michaud in particular has experienced a significant decline in occupancy to the point that it has impacted our ability to maintain operations.”

Osetek added, “Our board of directors and administration have evaluated all aspects of Michaud’s operations, including current and projected revenues and expenses. We see no reasonable likelihood that we can achieve financial viability, or make the significant investments that are necessary to deliver high quality care on a sustainable basis.”

In 2015 Michaud saw an operating loss of three hundred and sixty-two thousand dollars, and last year a loss of over half a million dollars.

“This has been an extremely difficult decision for our board of directors to make and have arrived here only after exhausting all other options we believe are available,” said Osetek. “Unfortunately this reflects the realities of the changing healthcare industry locally and across our state. For Michaud in particular, hospitals and other referral sources are now choosing to direct patient discharges to providers with whom they have relationships, formally or informally. As a result, small not-for-profit, semi-rural providers like Michaud, which is geographically located between Oswego and a number of Onondaga County providers, is not receiving the volume of referrals necessary to sustain itself financially.”

Changing consumer preferences and government efforts to drive utilization of less expensive, non-institutional community-based services are among other factors cited by the Michaud Board of Directors as contributing to the decision to close the nursing home.

“We cannot continue this financial trend and be able to provide care and services to the community while sustaining ongoing operating losses, and our budget projections for this year are no better,” added Osetek. We know this is a very difficult situation for all involved but especially for our residents and their families, some of whom have been in our care since we assumed operations in 2005, and who call Michaud home. We will not close until every resident has been relocated to a provider of their choosing, and we will work with that provider to help ensure that any transition is the least disruptive as possible.”

Currently there are one hundred and thirteen full-time or part-time staff at Michaud.

Administration at Michaud will seek to provide qualified staff with transfer opportunities at St. Luke Health Services so that they can maintain their employment. Michaud will work directly with non-union employees, and will work with 1199SEIU officials on behalf of union-represented employees to establish the terms for such transfers and to address the impact that the closing will have on our staff.

Officials stressed that the decision to close in no way reflects the quality of care provided by staff.

Ratings by the Centers for Medicare and Medicaid Services (CMS) place Michaud among the highest rated providers in Oswego County on their “Nursing Home Compare” website.

Michaud’s administration will comply with State Department of Health guidelines and instructions during the closure process, and will work closely with health care providers and other parties to ensure that the community’s long-term health care needs are met throughout the process.

In accordance with the closure plan, Michaud management has immediately begun working with residents and their families to begin to transition them to the most appropriate and qualified care setting for each individual.

Relocation timing is dependent on each individual resident’s medical condition, preferences, and availability of appropriate alternative placement.

Residents and families seeking further assistance can also contact Ombudsman Joan Pierce 315-676-2866 or Diane Adler 315-963-7834. Currently there are 64 residents at Michaud.

Information regarding closure plan progress will continue to be available to the public through the Michaud website at www.stlukehs.com/michaud-residential-health-services, and through releases distributed to the media as may be needed by the organization.

Source URL: https://oswegocountytoday.com/news/fulton/michaud-residential-health-services-in-fulton-to-close-in-the-face-of-insurmountable-financial-challenges/

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