Thomas MacMIllan Photo
In the face of bankruptcy, a West Rock nursing home has vowed to stay open. Meanwhile, the state is watching closely to ensure that the residents continue to be taken care of.
The West Rock Health Care Facility, a nursing home on Level Street, filed for Chapter 11 bankruptcy on Dec. 31. Vincent Klimas, the center’s administrator, said the bankruptcy filing was caused by changes in state regulations, which forced the facility to discharge many residents in recent years. That has meant more empty beds at the home, and fewer Medicaid payments coming in. Nearly all of the center’s residents are Medicaid patients.
State Rep. Toni Walker, who represents the area, said she is working to keep the West Rock Health Care in operation. That may mean finding a buyer to take it over, she said.
At the same time, the State Department of Social Services (DSS) is monitoring the facility to ensure that patient care doesn’t suffer as a result of financial troubles.
Sitting in his office at West Rock Health Care on Thursday afternoon, Klimas emphasized that the home will stay open. “We are not closing,” he said repeatedly.
He later described the center as a “skilled nursing and rehabilitation care facility” serving a population of various ages. The home has 87 beds and 80 employees. According to DSS, the business reported a $1.06 million loss on Sept. 30 2008, and negative balances are projected through Jan. 31 of this year.
Klimas was joined in his office by Tony Vinto, a co-owner of the facility. The two men explained how the business ended up in bankruptcy court.
The West Rock Health Care Facility has historically been primarily a psychological health care operation, Klimas said. But changes in federal and state laws required the center to restructure itself as a medical and rehabilitation facility, serving clients with a variety of long-term medical needs. As a result, the center has discharged 40 residents over the last two years, including 17 people at one time.
The majority of those beds have since been re-filled, Vinto said. The facility has admitted 32 new residents in the last two years. Now, the center has 77 residents. That’s 10 residents short of full capacity, according to Klimas.
However, the home was operating with a low population for a long period of time, which meant Medicaid reimbursements were not coming in. The center has accrued “significant past debts” over the last several years, Klimas said.
The bankruptcy filing is part of an attempt by the home to “reorganize and restructure … Just like GM,” said Vinto. Except without the bailout, he added.
Klimas said the center is working on a plan to reorganize with an emphasis on a strong marketing plan to fill the empty beds. He predicted the home will “survive and prosper.”
The difficulties faced by West Rock Health Care Facility are part of a larger trend in the health care industry, said Vinto. The state has lost 30 nursing homes like West Rock, he said.
Melissa Bailey File Photo
Reached by phone on Thursday, State Rep. Walker expressed similar sentiments. In similar cases in Connecticut, a buyer has stepped in to buy up a struggling home, Walker said.
“Is there a possibility that somebody else could purchase West Rock and take over the facility?” she asked. “We went through this with a couple of other facilities — trying to find people out there who are willing to take on the facility and maybe come up with a new management system.”
Klimas said a buy-out is one of “all kinds of potential answers,” but it would not be West Rock’s first choice. “The owners want to keep it themselves.”
DSS Is Watching
The State Department of Social Services has been working with West Rock to help it through its financial difficulties, according to Kathleen Kabara, a spokeswoman. The department increased the facility’s Medicaid reimbursement rate. It also fast-tracked reimbursements for services the center has already provided. Klimas said DSS has sped up payments that can take months to process.
Since most of West Rock’s residents are supported by Medicaid, the state is working to ensure their ongoing care. “Along with representation from the Attorney General/’s office, DPH and DSS are involved in protecting the clients and the states interests, ” wrote Kabara in an email.
As part of the bankruptcy process, the state’s long term care ombudsman has been appointed to keep an eye on operations at the home, to ensure that a lack of money doesn’t mean a lack of patient care.
“They come out and monitor us,” Klimas said. State staffers have visited West Rock to make see that it is adequately staffed and supplied. Patient care at the center has not declined, Klimas said.
Goldson Hopes For No Blight
Informed that a nursing home in his ward had declared bankruptcy, West Rock Alderman Darnell Goldson said, “That’s so sad.”
He said he hopes that the center will remain open, for two reasons. First, because the residents there are getting good care. And second, because a vacant building in the area would only contribute to problems the neighborhood already has. “Vacant facilities get blighted,” he said.
The West Rock Health Care Facility is located across the street from aging public housing projects where residents have complained of neglect.
Melinda Tuhus contributed reporting for this article.