[Vision2020] Selling Latah Health Services

[B. J. Swanson]

Jerry & Roger,

There are some inaccuracies in your Vision 2020 posts that I feel must be
clarified.  I am writing this as a Latah County citizen and not as Chair of
the Board of Gritman Medical Center.

Murf Raquet's editorial in the Weekend Daily News presented an interesting
but unfeasible concept.  This was reviewed by the Latah County Commissioners
and County Attorney Bill Thompson at the Board of County Commissioners
meeting on Monday, January 8.  Mr. Thompson said that the Idaho Statutes are
clear that simply asking voters to remove the reversionary clause from a
county owned health care related property is not allowed.  I believe the
Statutes are 31-3515 and 31-3515A.

It is very unfortunate that Latah Health Services closed and many skilled
care and assisted living residents were forced to move elsewhere.  LHS had
been in serious financial trouble for at least the last five years.  It was
unable to adequately maintain the facility and found it very difficult to
borrow money to fix it partially because of the reversionary clause.  County
officials were concerned that a tax supported bond to fix the facility would
not pass.

Jerry is correct in stating that the nursing home industry is highly
regulated.  It is also very poorly reimbursed by Medicare and Medicaid.
Quite often the reimbursements do not even pay the costs of care, not
including maintaining a facility. 

LHS tried for years to recruit nursing home operators to manage the skilled
nursing and assisted living areas.  Where were the Spokane companies then?
No one was beating down the LHS door to take over this facility.  They
finally contracted with (begged) Valley Vista in hopes that a more
experienced operator could make it work.  With poor reimbursement and a
facility in disrepair, Valley Vista could not make it work either.  This
trend is very common in the nursing home industry. Bankruptcy and failures
are common and include previous owners of Aspen Park, Clark House and Aging
with Grace.  Now add LHS to the failure list.  If this is such a lucrative
industry that two Spokane care companies are all of a sudden interested,
then why didn't they show up several years ago?  In my opinion, neither
seemed very interested now, either.  It is common that nursing facilities
must have a majority of private pay residents to basically subsidize the
Medicaid residents.  Thinking that Rockwood Manor or Sunshine Gardens from
Spokane could make this work with mostly Medicaid residents with Idaho
reimbursement rates is a fallacy.  Jerry said they were interested "...under
the right conditions."  It would be interesting to know what conditions.
For Latah County taxpayers to subsidize Spokane companies, one for-profit
and one non-profit, would probably not be popular either. 

Gritman is a 501(c)(3) non-profit corporation.  It is owned by the community
and governed by a 10 member community board. Gritman's mission is to meet
the healthcare needs of the community and has been doing this for over 100
years.  Any profits that Gritman makes are reinvested in healthcare for this
community, not Spokane, not dividends for shareholders and all board members
are unpaid volunteers.  

If the voters approve transfer of the property to Gritman, it is Gritman's
intent to remodel the facility into a community wellness center for the
benefit of the whole community.  This will include the therapy pool, Gritman
Adult Day Health and many other wellness services that are currently being
studied, including the possibility of assisted living if a viable operator
can be found.  Gritman is also willing to lease back space for County
offices. It is estimated that just bringing the facility up to safety
standards will cost well over $1 million, which Gritman is willing to
invest.  Removing the reversionary clause will enable Gritman to negotiate
more favorable financing to fund the necessary renovations and repairs.
Leaving the reversionary clause in place would make it financially
unfeasible for Gritman to operate the facility as a non-profit wellness
center.  

Gritman has never developed property for anything but healthcare related
purposes and has never wavered from that position.  I am confident the
expert planners, managers, grant writers, etc., available to Gritman can
make LHS a valuable community asset now and far into the future.

B. J. Swanson
Latah County Citizen