NorCo Council Treats Gracedale Nonprofit Options Skeptically

Gracedale workers listen to NonProfit Options

After being elected as President of Northampton County Council, the first thing John Cusick did was urge fellow Council members to adopt a resolution authorizing a "study" of the advantages and disadvantages of converting the County nursing home, Gracedale, into what is known as 501c3 nonprofit. During his Council campaign, Cusick argued that this would enable administrators to get medicare and Medicaid reimbursements at the same level as is provided to other non-County homes. Cusick got what he wanted, and a study was authorized in January in a 6-3 vote, with only Ken Kraft, Bob Werner and Peg Ferraro opposed.

Premier, the County's Administrator at Gracedale, had offered to provide this research at no charge. Vice President John Belko, whose company already manages two nursing homes that have been converted into nonprofits, presented his company's findings at the February 18 meeting of Council, with about 15 Gracedale employees sitting in the office, including union agent Jim Irwin and union president.Hector Rivera. 

No one spoke during courtesy of the floor. But Controller Steve Barron cautioned Council, before the presentation was made, that  he would "highly recommend a true and independent opinion" from a party that has no interest in the matter."We have no preference," stated Belko.

A 501c3 nonprofit is one that is exempt from federal income tax. Persons who make donations are able to deduct their contributions. It is barred from involvement in political campaigns. 

Booster Club Option

The most innocuous form of nonprofit Belko described is one that would enable the facility to raise private funds that are tax deductible. Barron called this the "booster club" option because it is similar to booster clubs at many schools, which have a 501c3 status. This is a kind of 501c3 group that Bob Werner and Peg Ferraro had described over a year ago, and no one opposes this concept.  That's because the nursing home would still remain, in all other respects, a county owned and operated nursing home.

County Control Option

The second option discussed was one in which Gracedale's assets would be conveyed to a 501c3 nonprofit corporation, but the County would still be in overall control. According to Belko, the County would still receive the same Medicare and medicaid reimbursements as a county-owned home. But he indicated the employees would no longer be considered County employees.

Controller Steve Barron pointed out that this would be a disaster. Because all these employees will be considered involuntarily terminated, they would be able to take their pensions.

Another drawback is that there would be a smaller pool for health insurance and workers' comp, which would result in higher costs.

The home would no longer be able to rely ion the County for things like IT services, but would have to make its own arrangements.

Belko stated that Gracedale would no longer be hampered by the bidding requirements imposed by state and county law, but ken Kraft questioned whether that's true. Since the asset itself would still be county-owned, Kraft maintained that all those requirements would still apply. Belko admitted he just didn;'t know and would have to research the matter.

Belko admitted the unpopularity of mass firing and mass re-hiring. "All you're doing ... is taking people's pensions and paying less money, probably minimum wage." complained Ken Kraft "Basically, the employee loses.".

A final drawback, and one driven home by Barron, is that the County would no longer be able to allocate overhead costs to the nursing home. That amounts to nearly $3 million per year.

Privatized Option

The third and final option was one ion which the County would surrender control to some outside board. Though this would enable the nursing home to seek higher Medicaid and Medicare reimbursements, Belko warned that under this option, the outside board could decide it no longer will house people with no income.

Bob Werner complained that his proposal, which essentially was a "booster club" option, had been morphed and changed.

There was little sentiment with moving forward with any of the options at this juncture. Hayden Phillips stated he is tracking legislation in the state senate that will increase the reimbursements paid to county-owned nursing homes.

After the presentation, John Cusick refused to allow a Gracedale employee to pose a question that occurred to her during the presentation. He noted that she should have spoken at courtesy of the floor. But that occurred prior to the presentation.

Instead of starting this meeting with a prayer to the "Heavenly Father," as he did last time, John Cusick asked everyone for a moment of silence in honor of deceased Supreme Court Justice Antonin Scalia.

In the meantime, I am contacting the Satanic Temple so they can lead a "convocation of the godless" next time council meets. Perhaps that might convince him to keep church and state separate.