Health Systems, Inc., of Osage Beach has notified the Daviess County Commission of its intent to discontinue its business management of Lake Viking Health Care Center in Gallatin effective March 31, 2009.
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County Commissioners Lance Critten, David Cox and Danny Heldenbrand became aware of the decision last Friday. The company, doing business here as N&R of Gallatin, Inc., also issued notices to the 23 residents currently at the nursing home.
Negotiations are underway which could lead to new management without disruption of nursing home services here. A business broker located in central Missouri is already involved and as many as three different nursing home businesses have expressed interest.
County commissioners are cautiously optimistic that the nursing home will continue providing services without disruption as management changes.
The county, which owns the building and its contents paid by taxpayer money, kept back over $280,000 from the first lease payments received for transitional situations like this. Health Systems has offered to continue business operations until new management is in place, providing it receives a management fee.
"This was a decision on their corporate level," Commissioner Danny Heldenbrand said. "They indicated that their ‘break even’ resident count was around 35, so they weren’t interested in continuing their management of the nursing home even when we offered to dramatically reduce their lease."
The commissioners note that declining numbers at county nursing home facilities is the trend across the country, since the advent of home nursing care and more locally the emergence of such facilities as the Veterans Home in nearby Cameron. But different management may mean different circumstances at the nursing home in Gallatin.
"Health Systems invested quite a bit in remodeling and reroofing," Commissioner Lance Critten said. "They chose not to offer services such as physical therapy, assisted living and rehabilitation. so that might mean opportunity for some other business management firm."
The county commissioners intend to keep the nursing home in operation. Business questions will be referred to the county’s attorney, Robert Cowherd of Chillicothe. Others with questions about the nursing home’s status and future should call on the county commissioners.
The local nursing home has been leased by Health Systems since June, 1999. Jim Lincoln of the firm signed a 10-year lease agreement with two 5-year lease renewal options at that time. Terms of the original lease were renegotiated in 2007. The county agreed to place lease payments on a sliding scale at that time with incentives to encourage Health Systems to seek more residents.
Prior to Health Systems management, the nursing home operated as the Daviess County Care Center. The not-for-profit DCCC board of directors voted unanimously to liquidate and dissolve the DCCC corporation, which held a lease agreement signed in July 1995. That management lease was to expire July 18, 2000.
The nursing home building was constructed in the 1960s with taxpayer dollars only involved in the initial construction and later when an Alzheimer’s unit was added. Voters approved a bond issue for construction purposes, but no tax funding was approved for maintenance or operational expenses. The nursing home has a 97-bed capacity.