County Finding Ways To Get Out of Debt
Updated: February 26, 2007
It's a fresh start of sorts. This week residents are moving into the new nursing home, and Champaign County is hoping it can move on from it's money problems in the process. Every year, the nursing home operates at a one point two million dollar deficit. Monday night, auditing firm presented a plan to get the nursing home out of that hole, as it makes the switch into its new facility. "The question the board asked us is whether or not we felt the home could break even," says Michael Scavotto, president of Management Performance Associates in St. Louis. "The answer is yes, they can get very close if they make some of these changes." Those changes include cutting food costs by switching dinners from banquet style to restaurant style. Nursing home director Andrew Buffenbarger says his staff has already made that switch, reducing waste. Scavotto and his firm are also recommending therapy to more residents. He says if more residents get therapy in the nursing home it means more money for the home from Medicare. If these changes are accepted, they would also mean a fee increase of $5 a day for residents; that equals about $1,500 a year. It could be a big hit for residents paying costs out of pocket, but the consulting firm says its necessary because operating costs are rising every year. "You just can't do it for nothing," Scavatto says. "The government doesn't cover all the costs of care so someone has to pay extra costs. That's sthe story of healthcare, not just here, everywhere." Now that the county has ideas to help cover those costs, administrators are the ones responsible for putting them in place. Scavatto says with all the changes his company is recommending the nursing home could be close to breaking even within a year or two. That's a big change, considering right now the home racks up $100,000 in defict per month. "It's possible. The only real proof is in the pudding," Scavatto says. "If someone says I'm going to save $500,000 come back next year and see how they're doing. But I think it's within their grasp." Thecounty paid 20-thousand dollars to hire this auditor, but many board members say it's money well-spent because it means no job cuts. In the past, that's how county has saved big money. Board members added, this plan has nothing to do with the mold problems at the new home. The money saved from these changes would only cover operational costs that have been brewing at the home for years.







