On April 1, there will be a new beginning
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The Daviess County Commission has negotiated a 10-year lease with the Osby Corporation to take over the management of Lake Viking Care Center, now to be known as Daviess County Nursing and Rehab Center.
The contract was signed on Monday, March 9.
Lance Critten, presiding commissioner, said, "We are pleased and happy to announce this new management contract. We want our citizens to know that we are confident this is a very positive development for our county and our community."
"This is a very good lease for our county," said Commissioner Danny Heldenbrand. "Other nearby county-owned facilities have signed contracts with far less favorable terms." He added that some are in financial trouble. DeKalb County agreed to accept $1/year just to get someone to operate their nursing home.
The lease itself is the same type that had been in effect with the previous management company. It is a triple net lease, which makes Osby Corporation fully responsible for maintenance with a couple of special exceptions. Due to the age of the boiler (which is original) and the windows, the commissioners have agreed to spend $150,000 toward new windows, a new boiler and a cooling system.
The county has accumulated over $286,000 from former lease payments that will be used for the improvements. With the rent payments, the Care Center Fund will eventually be replenished back to that amount.
Osby Corporation has agreed to spend a minimum of $150,000 in capital improvements to the building.
Rent for the first two years of the 10-year lease will be $1 per year, giving the Osby Corporation a chance to reorganize and place the operation in a profitable status. At the end of two years, Osby Corporation will pay $72,000 per year for the next eight years.
A sliding scale on the rent will also apply when the patient population exceeds 50. Osby Corporation will pay an additional $200 per month additional rent for each patient over the benchmark census of 50.
At the end of the 10-year lease, there are options for two additional 5-year leases. Rent would be increased with each new lease term.
The Osby Corporation, owned by Ed Osby, has been providing long-term care for over 34 years. Osby’s current operations include a nursing home in Fairfield, Iowa, and one in Maryville. An assisted living facility supplements the nursing home operations in Fairfield.
Mr. Osby is enthusiastic about the prospects in Gallatin. "The opportunity in Gallatin will differ from my past experiences. I will be blessed with the distinct opportunity of pooling resources with the county commissioners, local physicians and community members in unison to provide top notch long-term care."
According to Osby, upgrades and innovations will be almost immediately apparent. The tentative plan for improvements the first year will include addressing equipment needs, increasing and properly training prospective staff members, opening a special care unit for Alzheimer’s and related ailments, expanding rehabilitation to meet needs of short-term in-patient stays and outpatient care, and attending to special needs by dedicating an area to hospice care.
Plans are also in place to set up a "community advisory committee" with hopes of promoting community input on the new operations. In like manner, there are plans to maintain discussions with the Gallatin Ministerial Alliance to assure that spiritual needs are cultivated as well.
"It is important to put into the picture that none of this could have been considered or realistic without the dedication to quality care by the Daviess County Commissioners," added Osby. "It will be a unified effort in accomplishing these goals."
Commissioner David Cox said the commission was always firmly committed to continuing the operation of the county facility. The signing of the contract with Osby Corporation is a successful culmination to the commission’s efforts to provide quality long-term care to residents in this area.
The nursing home facility had been leased to Health Systems Inc. of Osage Beach since June, 1999. Health Systems is also known as N&R of Gallatin, and as The Lincoln Group.