About Me

My photo
Nazareth, Pa., United States

Thursday, November 03, 2016

Is Gracedale in the Black?

The Morning Call has recently reported that Gracedale, Northampton County's nursing home, is projected to net between $1.6 and 2.4 million this year. But at a November 2 budget hearing, county officials were decidedly more cautious.

Gracedale Fiscal Administrator Peter Koorie said there could be a $500,000  profit. "But we all know how the fourth quarter can change things," warned Human Services Director Allison Frantz. Koorie then said that, if all goes well, the nursing home could earn $1 million.

Then Executive John Brown popped up to say that Gracedale is currently $1.6 million to the good, but should have expenses of $1 to 1.5  million in the last quarter.

"It could be neutral to positive through the end of the year," he said.

For a nursing home that has been leaking money, this is remarkably good news. But it's not $1.6 to 2 million.

Brown also warned, "We kind of hit the pinnacle." He believes it is probably impossible to squeeze any more revenue out of the nursing home than is already generated.  "We're at a revenue generation cap," he said. He added that everything at Gracedale is "fragile," and a single event can reverse this trend.

Brown also noted that the County must spend between $1.5 and 2 million in capital improvements at Gracedale. That is not counted in Gracedale's budget, but the reality is that the nursing home would have to earn $2 million before it could be called revenue neutral.


Anonymous said...

Who said that Gracedale has to make money? This is a "Human Service Need" that must be addressed in Northampton County. Former Commissioners and County Council saw the need for this service for our "elderly" and those unable to care for themselves. Not all Families are "well to do" and can't afford nursing care for the sick and elderly. I don't mind paying for the residents of Gracedale. I do mind paying for the slime balls that are in our county prison.

Bernie O'Hare said...

Well, I never said that Gracedale has to turn a profit. What I said is that the report that it earned $1.6-2MM this year is both premature and inaccurate. It is premature bc 4th Q expenses are not in. It is inaccurate bc there is $1.5-2 MM in capital improvements needed there every year. But it is good news.