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THE FUTURE OF PINE HAVEN

Lynn Sloneker
ccSCOOP News

 

03-29-09 - Last week, as the Columbia County Board of Supervisors pondered the multiple options available to close and relocate the Pine Haven Nursing and Rehabilitation Center, county residents mobilized in opposition.

Life has not been easy for county elected officials recently, especially the board's chairman, Art Baer (R-Hillsdale). Coming under fire for the decision to relocate the Department of Social Services six miles outside the county seat, the board was picketed by sign-carrying protesters and had its deliberations scrutinized by the regional media—a radical change from the controlled and almost mundane work environment the board usually enjoys.

 

But if current sentiment proves accurate, the idea to relocate the county-owned Pine Haven facility now under consideration will generate even greater controversy and may easily make the DSS storm pale by comparison.

The proposal in question would close the existing Pine Haven home, now in Philmont, and relocate it to a 20-acre parcel in the Village of Valatie, as a part of a new senior living campus, the design of Long Island developer Ronald J. DeVito.
Disclosed to the public in December, DeVito's "aging in place" campus is slated to include independent living and assisted living accommodations, in addition to a skilled nursing facility.

Baer favors the construction of a new home for two major reasons—a new skilled nursing facility will increase Medicaid reimbursement to the county and provide for the delivery of a higher level of long-term care for residents. He said the county currently expends $1.5 to $1.8 million annually to support the facility. In addition, Baer said, a collaboration with DeVito will permit the county to manage the construction debt by structuring repayment over a 30- to 40-year period.

DeVito serves as legal counsel to Senior Housing Investment Advisors, Inc., and is, according to the SHIA website, "a respected developer of, advisor to, and operator of seniors housing projects." A practicing attorney for 45 years, DeVito specialized in real estate development, construction and project financing. He is currently of Counsel to Harras Bloom & Archer LLP of Melville (Suffolk County).

Although not named, DeVito's senior campus idea was one of six potential initiatives included in the economic development plan created by Baldwin Bell Green, a New York-based management consultant firm, and presented to county lawmakers in September. Under that initiative, BBG projected a "chain reaction" of economic development from the senior campus that would include $6 million in new business, the employment of 107 people, and an additional $450,000 in revenue flowing to the county coffers.

But the decision for county lawmakers is not a simple "yes" or "no" to DeVito and his plan. As of last week, the board's Pine Haven Committee has at least six options to consider before the facility's future is decided.

Those options include:

 

The current Pine Haven facility, constructed in the 1970s and expanded in the 1980s

  • Do nothing. Maintain the facility; take on no major capital improvements.
  • Enter into lease with DeVito for new campus constructed in Valatie.
  • Construct a new senior campus in Valatie with DeVito.
  • Reconfigure the existing facility in Philmont, including: move office out of the basement; create large community dining area; build five dialysis stations (for both in- and out-patient use).
  • Construct a new stand-alone 120-bed skilled nursing facility at the current Philmont location.

A final option was added to the list on Tuesday, March 24: Construct the proposed senior campus at the Philmont location with DeVito.


All but the last option are presently undergoing financial analysis by Donald Evans, a reimbursement specialist and the Director of the Albany office of KPMG LLP. The results of that analysis will be discussed with the Pine Haven Committee next week.

For many, however, the Pine Haven move poses the fundamental question of whether economic development should be to the detriment of any one city, town, or village, or if in these challenging economic times, one locality should suffer as the result of decisions made by its county government.

Public opposition to the DeVito plan has grown steadily since word of Pine Haven's potential closure leaked late last fall. In the first public meeting coordinated by the plan's opponents, more than 50 people gathered Sunday afternoon at the Philmont Community Center to ask questions and express their resistance to an idea they believe will sacrifice jobs and create significant hardship for Pine Haven residents, its employees, and especially the Village of Philmont. Supervisor James Keegan (R-Claverack) and Supervisor John Musall (D-Hudson1) were present for the discussion; both serve on the Pine Haven Committee.

According to Robin Andrews, one of the event's organizers and a proponent of building the new campus in Philmont, the meeting was set up as a way for people to air their grievances and to offer the opportunity for organizers to engage directly with the community, recruit people to sign petitions, and make information available with the idea the facts must be shared countywide. "This is not just an issue for Philmont, it affects much of the county," she said.

To date, Philmont resident Al Wassenhove has almost singlehandedly collected more than 2,200 petition signatures in opposition to the facility closure and relocation. The governing boards of the villages of Valatie, Philmont, and Chatham, the Town of Claverack, and the City of Hudson have passed resolutions in opposition to the home's closure and relocation. A similar resolution is currently pending with the Ghent Town Board.

Opposition to the proposal centers on several points, including:

Jobs Critics argue that although elected officials claim the existing Pine Haven jobs will be moved not lost, the relocation will wipe out the largest employer in town and as a consequence, many, if not all, village businesses will feel the impact. What's more, a large number of Pine Haven employees live in Philmont and rent their homes, so there is the strong likelihood that if the facility goes north, many of the employees will leave Philmont, too.

Infrastructure Philmont's existing water and sewer systems were built to accommodate Pine Haven, and, according to Andrews, the system is still well below capacity. The Village of Valatie does not have a water and sewer system that can accommodate Pine Haven.

Loss of revenue If Pine Haven goes, so does its $60,000 a year water and sewer payment to the village, which, according to Andrews, covers a substantial portion of the debt still owed for the construction of the water and sewer plant in the 1970s. Without Pine Haven to help, that sum
will have to be shared by the 400+ Philmont households, a substantial financial burden, she said.


"If they do this, they will be ripping the heart out of Philmont," Andrews said Sunday. On any given day, Pine Haven's employees support village businesses. "There's also the rescue squad," she said. "Without Pine Haven, they will lose 50 percent of their revenue. And then there's the empty building," she said.

"With that kind of loss in Philmont, what is the net gain [for the county], by putting the facility in Kinderhook?" Andrew asked.

Information provided this week by Pine Haven Administrator Art Proper supported some of Andrews' concerns and indicated that home residents and employees do "come from the same places in the county."

  • Forty-four percent of the facility's 159 current employees live in Hudson and 19.5 percent reside in Philmont, while only 4 percent live in Kinderhook and Valatie.
  • Among the 118 current residents: 43 percent are from Hudson, and 11 percent are from Philmont. (Eleven percent come from outside the county.) Only 1 percent call Valatie home. None of Pine Haven's current residents are from Kinderhook.

Current and past Pine Haven employees and county residents—many from Philmont—contributed comments and questions to the conversation on Sunday.

 

What to do about Pine Haven—how to balance the needs of its physical plant, handle the increasing costs of long-term care, and attract new residents—has been an ongoing discussion at the Board of Supervisors for years. Excerpts from two reports currently on the supervisors' desks
concerning long-term care services in Columbia County and an initial analysis of the possible replacement of Pine Haven follow.

"Review of Long Term Care Services in Columbia County," McCarthy & Conlon, LLP, 2008:

"The total elderly (65 and older) population in Columbia County is projected to increase 10.6 percent" from 2004 to 2009.

"Currently [2007], there are a total of 688 licensed skilled nursing facility beds, in Columbia County, scattered among five facilities.

Barnwell Nursing and Rehabilitation
(236)
FASNY Firemen's Home
(92)
Livingston Hills Nursing and Rehabilitation
(120)
Hudson Valley Care Center [now Whittier]
(120)
Pine Haven
(120)

Although the New York State Department of Health "bed need methodology" indicates a shortage of beds in the county, "the actual utilization data contradicts this assessment. The likely cause is that facilities in surrounding counties are capturing Columbia County residents; and, in essence, absorbing part of the state's identifed bed need."

". . . it appears that although there will be a continued strong demand for skilled nursing home beds in Columbia County, it is likely that the existing inventory of beds will be greater than the demand."

". . . the current bed complement at Pine Haven is excessive. This is evidenced by the inability of all the facilities in Columbia County, Pine Haven in particular, to maintain occupancy levels averaging 95 percent or higher.

"We recommend that the County and administration at Pine Haven move forward
with a full financial analysis for the reduction of 40 skilled nursing beds; the implementation of a 20-slot Adult Day Health Care program utilizing the space that will be available from the bed decertification; and renovation of the old nursing home building into an adult home with assisted living (the ultimate number of beds will be determined by architectural feasibility). The actual percentage of assisted living beds to total beds in the adult home will be determined as part of the financial analysis. This service configuration will better meet the needs of existing Pine Haven residents and other residents of the County, while creating a desirable continuum of care in a campus setting."

KPMG initial analysis of potential Pine Haven replacement, Donald Evans, February 16, 2009:

Pine Haven percentage occupancy from 2002 through 2007: 88.26 percent to 97.83 percent

Averages to: 91.74 percent of 110 residents


". . . the overall 6-year average occupancy amounts to 91.74 percent or an average occupancy of 110 residents. These numbers could change with the addition of 2008 statistics but they would seem to show that Columbia County residents continue to believe in Pine Haven Home.


"This is so even though the Home has become quite aged and lacks the amenities of some of its newer competitors . . . even with the County deemed to be over-bedded by nearly 11 percent, the overall occupancy is quite high with only Barnwell [Valatie] showing significant available capacity of 33 beds."

[The Pine Haven occupancy rate for February 2009 was 93 percent, as reported by Administrator Art Proper, March 17.]

How was Valatie chosen as the new site? Keegan explained that DeVito chose Valatie based on demographic information the developer collected which indicated the majority of seniors (DeVito defines seniors as anyone 55 and older) reside in the northwest quadrant of the county, from Hudson north. As drawn by DeVito, the northwest quadrant included the major population centers in the county, including Chatham, Claverack/Philmont, Kinderhook/Valatie, and Hudson.

"Whether there are more seniors that live in that corridor or not is hard for me to believe," Keegan said.

While most in attendance expressed an appreciation for the fiscal issues connected to the county's continued financial support of a skilled nursing facility, they took issue with the way that support is being characterized as a "subsidy." That makes it sound like a bad thing, one woman said. "We should be taking care of our senior citizens," said another.

Keegan acknowledged the county's financial support of Pine Haven has increased steadily for the past four years. "It's not a bad idea to investigate our options," he said. "But it shouldn't be done under pressure and not when a developer shows up."

 

The original Pine Haven building—now abandoned

Keegan urged the attendees to let their opinions be known; to write letters or make phone calls to Baer and Supervisor Larry Andrews (R-Ghent), chairman of the Pine Haven Committee, and told them to "write what you know; write what you feel." Tell them to "keep Pine Have for residents of Columbia County," Keegan said.

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