Published: July 18, 2008 11:34 pm            

County home in the red

EBENSBURG — Laurel Crest again will not turn a profit despite intense efforts a year after the nursing home incurred a whopping $3.5 million loss, officials said Friday.

“It’s grim, but we’re showing improvement,” President Commissioner P.J. Stevens said.

Finance reports for the first half of 2008 show a loss of $1.63 million, even with a turnaround in June when the home realized a $176,000 profit, said Steve Dale, Laurel Crest’s finance officer.

Monthly losses this year have been in the $300,000 to $400,000 range, Administrator Deborah Nesbella said.

A loss of $1.9 million is projected for the year, Dale said.

That’s an improvement from the $2.7 million loss that was anticipated for 2008 when the budget was adopted in December, Nesbella said.

Starting to kick into the financial picture are lower personnel costs in ancillary services, including dietary, housekeeping and laundry workers. A total of 43 positions were abolished, some through layoffs in April.

Officials said the moves were made to right-size Cambria County’s nursing home for having more employees assigned for nursing care.

In addition, Laurel Crest is starting to see a turnaround in new residents being admitted after a troubled year in 2007.

Last year, state inspectors found deficiencies serious enough that the home was put on provisional licenses.

Laurel Crest now has its regular operating license back.

“The key to moving forward is that, as our staff levels rise (for nursing care), we can accommodate additional residents,” Stevens said.

As of Friday, there were 280 residents, up 17 from the end of December. Although the numbers fluctuate, officials said 11 new residents were admitted in the last two weeks alone.

The projected resident level in the 2008 budget is 320.

“We now have to move forward (to the number) because we don’t have a safety net for loss,” Stevens said.

Nesbella said: “We don’t anticipate a budget loss for 2009 at all.”

Laurel Crest has been reviewing all contracts to try to find savings, she said. About $1.086 million has been saved through staff cuts and cost-cutting measures, it was reported.

The $3.5 million loss for 2007 did not impact the county’s general fund budget because Laurel Crest has a positive fund balance to cover those losses, Dale said.

The home is hoping to reach 330 residents next year, which will produce more reimbursements when the facility reaches 90 percent occupancy for the year. That could mean an additional $200,000 to $800,000 a year, it was reported.

The county has not considered seeking a reduction in the 370 licensed beds because there is a potential need for that many, officials said.

Cambria would need more staff to do that in a competitive market for nursing personnel, they said.

        

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