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5/29/2007
Another nursing home bleeding red ink. Sell it now.
It’s really expensive for counties to be in the nursing home business these days. I’ve said that before in this space, and I’ll say it again. After much study (and not a little political angst) Calumet County is moving forward in selling the Homestead and Sheboygan is selling Sunny Ridge.
Now it’s Manitowoc County’s turn. And these folks are going through that same study and angst (chronicled here - search FoxPolitics.net for “nursing home” to turn up related articles).
In a new study by the Wisconsin Taxpayers Alliance, 36 counties issuing financial reports for their nursing homes reported deficits totaling $69 million – a total which has nearly doubled since 1998. And Manitowoc contributed significantly to that total – supporting their health care center to the tune of $3 million annually.
A Manitowoc County Board Study Committee, chaired by county board president Jim Brey, has completed careful research and is in the process of holding four public input sessions, three of which remain (5/31, 6/7, 6/14).
At their last information gathering session, Human Services Director Tom Stanton removed one of the Study Committee’s last remaining concerns, telling the group that private beds in the community could and will be found for the 36 individuals in the home labeled as “hard-to-place.” Brey acknowledged that Stanton’s presentation was interesting and surprising.
County Executive Bob Ziegelbauer strongly supports the sale. A May 22 letter from Ziegelbauer to County Board supervisors is posted on Matt Kadow’s web site. Kadow, a vice-chair of the county Democratic party and co-chair of Citizens Opposed to the Privatization/Sale of the Manitowoc County Health Care Center (COP/S), seems to be a regular nemesis of the County Exec. Through Kadow, COP/S claims “a community has a moral obligation to care for those among them that can no longer care for themselves.” When asked about the membership of COP/S, Kadow estimated about 10% are nursing home employees or their families and 50 – 60% are relatives of past or current Health Care Center residents. In commenting about how the county budget might be reprioritized to allow for continued county operation of the home, Kadow commented “That’s not our job.”
In his letter, Ziegelbauer:
- Asked the Board to move ahead “with all deliberate speed” on a resolution signaling the intent of the County to turn over the operations of the county nursing home to a private operator.
- Lamented that action was not taken five years ago, as losses have continued to mount.
- Pointed out that service would continue to be provided at the same high level under private ownership.
- Listed services that, unlike the nursing home, the county alone can – and must – provide, with no private alternative. Those services include, among many, housing prisoners, the court system, protecting children, families and the mentally ill, the Highway Dept. and Joint Emergency Dispatch.
- Listed tradeoffs that would have to be made if the county insisted on continuing to run the nursing home – e.g., elimination of the University Extension department, decreasing spending for planning and the park & rec. activities, delaying upkeep and maintenance, etc.
- Lamented “ruthless fear mongering” by those fighting the privatization effort.
- Wrote that “tax increases are not the answer!” as they “will damage our local economy, hurting real people…”
Kudos to County Executive Ziegelbauer. The budget realities have caused him to oppose his own Democratic party, which voted to oppose the sale. He’s making the tough calls and asking his board to support him by doing the same. Soon. “The longer we wait the more difficult it gets, and it’s plenty difficult already.” I couldn’t have said it better myself.
COMMENTS
This isn't about a democrat policy, I am a Republican and support the Manitowoc County Healthcare Center.
County Executive Ziegelbauer and others have perpetuated inaccurate statements concerning the Manitowoc County Healthcare Center in relation to the overall budget. The Manitowoc County Healthcare Center is not causing the county to lose millions of dollars. What has occurred is a irresponsible budget that was introduced by the county executive and voted into acceptance. I personally voted against the county executive’s budget because the county executive did not address overall operational concerns with all departments in the county budget. The county executive states he will veto a sales tax implementation, yet he proposes to sell the healthcare center and reallocate those funds into other projects rather than reduce the tax levy.
Why just the Manitowoc County Healthcare Center when we have a jail that has not endured any scrutiny for its operations, especially since the article concerning a resident of that jail indicating game rooms, cable television, and elaborate meals. Incarceration should not be about comfort but about confinement and paying the debt to society. Before any expansion, remodeling, or operational changes a full review of the jail operations should occur.
Why just the Manitowoc County Healthcare Center when we have a highway department that hasn’t faced any scrutiny. We have a brand new building on Highway 310 that was built to have greater access to I-43, yet we spent more taxpayer’s money to build another facility directly on I-43 behind the way station.
Additionally, no review is ever done as to the competiveness of the road maintenance and paving operations. In the past, the highway commissioner has indicated the highway department is not competitive with private industry as far as paving. Then why are we in that business.
Why do we have buildings and operations scattered throughout Manitowoc County when all operations should be in one facility with the empty buildings being sold and placed back on the tax rolls. Why isn’t an assessment done on the amount of land the county owns and what could be sold to be placed back onto the tax rolls in order to generate revenue?
I strongly believe as well as my constituents (the ratio of people emailing, telephoning, and sending letter in support of keeping the healtcare center is about 50 to 1), the county executive has not provided a responsible budget, he is now proposing irresponsible actions in regards to the healthcare center, and has further proposed to expand other county operations without due diligence to their competiveness and effectiveness.
What are the true facts concerning the finances of the Manitowoc County Healthcare Center:
Fact-The operational losses are at the lowest point in 7 years.
Fact-The Manitowoc County Healthcare Center currently is serving residents who have not been able to seek care in privately operated facilities due to the extent of their behavioral or physical issues.
Fact-The State of Wisconsin does not properly fund the Medicaid reimbursements and in fact receives about $77 million from the federal government for Medicaid but only distributes about 40% to the nursing homes and skims off the remaining money for other uses.
Fact-A proposed Federal rule change would increase the Medicaid reimbursement and would realize Manitowoc County anywhere from $500,000 to $1,000,000 to reduce the tax levy amount for the facility.
Fact-Labor negotiations will likely result in healthcare cost savings for the county and further reduce the amount from the tax levy for the healthcare center.
Fact-If the facility is sold, the taxpayers may be responsible for up to 23 individuals who would require specialized care that would cost around $700/day per patient or cost anywhere from $3.6 to $5.8 million. This cost must come from the tax levy and would be an increase from the current amount of $2.5 million.
Fact-A new facility would not have to keep the current patients and in fact if the new facility cannot provide the necessary care, the patient must be relocated. Due to the limited amount of facilities that treat severe dementia cases, as does the Manitowoc County Healthcare Center, those patients may have to be relocated to facilities as far as Madison, La Crosse, or even Northern Illinois.
Fact-The county executive has proposed the sale or lease of the facility without a responsible assessment completed as to what are the costs and options of selling, leasing, keeping, and expanding the current facility. This is irresponsible and not an effective business decision process.

Manitowoc County Supervisor, Robert Dobbs (Wed May 30 08:16:55 2007)
Thanks FoxPolitics, for a nice cogent article. I wish my local newspaper covered important issues as well as you did in your article.
I'm not going to take time to refute all of this nonsense from Supervisor Dobbs, but anyone interested in the reams of factual data can see it all posted on my website and judge for themselves. See it posted at www.bobziegelbauer.com and click on "Local News." Feel free to call me with questions."

Bob Ziegelbauer (Wed May 30 11:12:10 2007)
Please note: The following 1,227-word comment was submitted anonymously - which I don't respect or appreciate, but will print in the interest of fairness. JE Citizens Opposing the Privatization and or Sale of the Manitowoc Health Care Center (COP/S) is a non-partisan Citizen Action Group. Predicated on the moral responsibility of a community to care for those who can no longer care for themselves, COP/S is dedicated to the preservation of the Manitowoc Health Care Center as a county owned facility to serve as a nursing home of the finest quality for county residents and, most importantly, as the safety net for those county residents who can no longer care for themselves.
It is a fact that nursing homes (private or publicly owned) are legally forbidden to care for people for whom they are not capable of providing necessary care. This is a good provision, one that protects the residents of nursing homes. It also creates a responsibility to be borne by County Governments - to provide for those residents whose needs can not be met by the private sector. These vulnerable (safety net) residents include those:
With no ability to pay Who pose a violent threat to others With medically complex disabilities that cannot be met by other providers With an active mental illness Whose cost of care far exceeds the rate that Medicaid will pay The Manitowoc Health Care Center (MHCC) now provides care for at least 33 residents that meet the above criteria – there is no privately owned nursing home that will accept these residents. There also is a waiting list of about 20 county ‘dementia’ residents who seek care at MHCC. These numbers will grow as the number of Alzheimer’s patients increases, as the population ages (the coming of the Baby Boomers).
Although County governments are not ‘mandated’ to operate nursing homes, they are mandated to provide care for those who become vulnerable, whose needs can no longer be met by the private sector. It is COP/S position that this care can most humanely and economically be provided by a county owned and operated facility such as the already existing Manitowoc Health Care Center, that care offered on a broader, more complex scale can more efficiently provide care for those who become vulnerable, that the scale of efficiency is proportionate to the broad range of resident needs, those requiring the least of care buffering the costs of those who need more intensive care.
Currently, at the MHCC, the average cost per resident is about $220/day or $80,000 per year. Alternative care for ‘safety net’ residents could go as high as $700/day, or $255,500 per year, in the private sector. None of these providers are in Manitowoc County.
It would only take 12 of the already 33 ‘safety net’ residents to receive care in a high cost facility to create a cost to Manitowoc County Taxpayers $3 million or more per year. This is the same amount of money, that part of the tax levy, that has pushed the County Executive to ask for the sale of the MHCC. Currently, this $3 million provides care for 150 residents, these tax dollars of County taxpayers, remaining in the County for recirculation. If, after privatization, the equivalent of just 12 residents are shipped out of the county for care, not only will there be an added burden to those affected families, but that $3 million will totally vanish from the County.
Privately Owned Nursing Homes:
- The primary mission of a privately owned nursing home is to provide a profit to its shareholders. This is achieved by reducing the patient/staff ratio, reducing staff wages and benefits, and cutting services to the home’s residents.
- Staff turnover in privately owned nursing homes is extremely high, about 200%. This means that on average, an employee lasts only 6 months, further challenging the quality of patient care.
- Once the ability to provide for residents falls below the state and federal mandates for adequate care for ‘safety net’ residents, ‘safety net’ residents (the one’s who can no longer realize a profit) will be refused readmission should they have to leave the nursing home for health or behavioral issues.
- By their nature, and established by law, private nursing homes have limited liability as well as the right to declare bankruptcy, as was the case with the former Manitowoc County nursing home, Park Lawn.
- Also, private homes frequently undergo changes in ownership, which results in loss of stability for the patient as well as increased turnover of staff. Again, the former Park Lawn home is an example of numerous changes in ownership.
County Owned Nursing Homes:
- The primary mission of a county owned nursing home is to provide quality care for all of its residents, regardless of their ‘safety net’ status.
- This is accomplished by providing adequate staffing, both in numbers and quality. The quality of staff is directly proportionate to the quality of the working environment, wages and benefits.
- That portion of the tax levy that is spent on a county owned facility stays in the county, those dollars recirculated. It becomes an investment in the community at large.
Manitowoc Health Care Center:
- When the mortgage costs are removed from the $3 million deficit, along with the $500,000 to $1 million reduction due to the inclusion of more federal funding, the cost to the taxpayers is cut in half.
- Is currently operating below budget
- Is not the only mandated expense the county bears.
- Included in the other 95% of the tax levy are the gigantic and growing losses incurred by the judiciary, law enforcement, parks, highways, library, human services, waste management, government operations, etc. — all placing a growing burden on the taxpayer. The MHCC is just a small part of the entire tax levy.
- As the capital debt is retired (the remaining [2006] principal balance is $8.2 million – this remaining after the initial $13 million cost of the new HCC), this portion of the tax levy will decrease to extinction. The county has already retired 37% of the debt in less than 4 years.
- The staff turnover rate at the MHCC is 25%. It is the longevity, experience and skills of the employees that translate into enhanced quality of care for the residents.
- MHCC boasts a strong coalition of donators – including a volunteer organization called the Angels Association. The stained glass windows in the chapel, the greenhouse, living plants, art work, the painting of the dome, the gazebo – these and other donations for patient care are provided by a community that cares about its people. And it is donations like these that make it the ‘Cadillac’ of area nursing homes – features not found in the private sector.
The false accusation that the financial woes of a community are due solely to those few who can no longer care for themselves is an outrage. It is the responsibility of a community to care for those who can no longer care for themselves. The extent to which this is accomplished is a measure of that community. Manitowoc County has a 123-year history of providing a quality system of care to those in need. The Manitowoc Health Care Center sets the standard in the community for quality healthcare and works together with the private sector nursing homes to provide the best possible care for all Manitowoc County Residents. The Manitowoc Health Care Center stands as an exemplary example of the care its citizenry demands. That it is a wise investment enhances its value.
COP/S is dedicated to preserving this quality institution.

Carptown golddigger's (Thu Jun 28 22:06:42 2007)
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