ELIZABETHTOWN — Essex County has had to appropriate $775,000 to run Horace Nye Nursing Home for one more month.
The county had intended to turn over the 100-bed facility to the Centers for Specialty Care of the Bronx at the end of 2013, but legal issues are holding up the $4.05 million sale.
County Attorney Daniel Manning III recently told the County Board of Supervisors that the $775,000 is Horace Nye’s total budget for the month of January, of which all but about $128,000 is covered by revenue.
The $128,000 deficit will be paid from the county’s unappropriated fund balance. County Manager Daniel Palmer said it will recovered when the sale proceeds go into county coffers.
The county sold the home because it was losing more than $2 million a year. The sale agreement required the new owners to offer jobs to the home’s 133 employees.
The legal issues include two local corporations that the Centers for Specialty Care created to own and operate the Nursing Home. Essex Operations Associates LLC will run Horace Nye Nursing Home, and Essex Land Associates LLC will own the Horace Nye building and real estate.
Ownership will be transferred to those two entities, instead of the Centers for Specialty Care directly.
In addition, Horace Nye has numerous service and materials contracts that must be moved over or terminated, Manning said.
“We’re trying to work it out. There are probably 20 contracts with various people.”
Some will be assumed by the new owners, some not, he said.
They are also working out a side agreement to let the county keep its maintenance building next to the Nursing Home, which is on Horace Nye property, Manning said.
The county will continue its contract with a Medicare/Medicaid billing firm until April to try to close out all monies owed. The firm will get a total of $26,000 for the work.
Manning took the Board of Supervisors into executive session this week to discuss the home’s labor-agreement termination.
The nullification of the Nursing Home’s collective-bargaining agreement is expected to take effect when the transfer occurs, although parts that apply to layoff, recall and retirement will continue.
Manning said those are being negotiated.
Some employees at the home will retire or move to other county departments instead of going to work for the new owner.
The board came back into regular session after 15 minutes and voted unanimously to OK the changes to the contract.
Employees at the Nursing Home have been represented by the local chapter of the Civil Service Employees Association.
Email Lohr McKinstry:firstname.lastname@example.org