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Home My WebLink About1999-12-13 00-50 ORDERCOUNCILAMON Rem Nopp_5D Date: December 13,1999 Item/Subject: Order, Authorizing Staff to Suspend Implementation of Residential Care at the aty NUMirg Facility. Responsible Department: Executive By Coundl Order 99-165, the City Council authorized staff to Was the steps necessary M implement an alt rnabve c Hnuum of care proposal far tW City Nursing F llty. Under this proposal, l5 to M of the bads within the existing foMprint of the Wilding were W W changed from kxg-term to residential care. Unlike earlier resideMlal care proposaD, this option allowed for the change to W made within the editing portion a the building McuplM by the nursing facility and avokled the need to relocate Health and Welfare. The primary, morsel force behind this proposal was to improve the finanaal performance of Me facility. However, since this pmposal was adopted in May of 1999, acrupanry rates at the facilhy have steadily increased and are now near 90%(55 residents with a total capacity of 61). Our Frenre DirMor, Ron Heller, has undertaken a financial analysis of the facility which compares perfomwnce uMer the anent ce guratlon wfth andcipa periomwnce wbh ees Md l care. ThH analysis Indicates that the current configuration Deforms tatter Financially Ifoccupancy is above 52 residents. In effect, our cuneM financial performance with 55 residents is better than projected Derfomance under the residential ore option. As a resuh, staff is recommending that we place a WId on proceeding with the transition to residential care at Mistime. Thhwillalsoavddsaneathe®pitalm as iatedwiththischangeandallayusmapply drew funds to needed feebly improvement:. This proposal was discussed at the Tart mating of the Municipal 0p ratons Committee. The Committce recanmends your approval. The attached order would authorize stuff to suspend its efforts to implement residential cere at this time, wind the issue to W re-atlaressea by the Council in July, 2000. Depaamat Head Manager's Comments: Z9r a�X\,W My Manager Associated Information: Other, Memorandum from Ran Heller with attachments uuya, vn u.m. _ Finance Director Legal Approval: Ci Mr Introduced for X passage _ FirstReading pageof ` fe Referral to Finance AmigtroEroCovmlor YSlmex December 13, 1999 CITY OF BANGOR (MILE.) Order, Authorizing Staff to Suspend implementation of Residential (are at the City Nursing Facility. WHEREAS, Council Order 97400 adopted a continuum of are proposal for the Ory Nursing Facility which was designed to add residential are beds a the existing long-term rare beds currently available; and WHEREAS, by Council Order 99-165, this proposal was modified to allow for the reallocation of long- term beds to residential are beds within the existing footprint of the facility in order W avoid the necessity of relocating the Deparbnent of Health and Welfare; and WHEREfS, one of the primary purposes of there proposals was to Improve the financial performance of Me facifdy; and WHEREAS, since approval of Council Order 99-165 in May of 1999, occupancy rates at the facility have increased; and WHEREAS, at current cmupancy levels, the financial performance of the facility in Its current configuration Is better than that anticipated by the continuum of wre proposal. NOW, THEREFORE, BE UORDERED BY THE CITY OOUNCH. OFTHE Q OF BANGOR, THAT, City staff Is hereby authMzetl M suspend implementation of the residential wre proposal for the City Nursing Facility, as originally authorized by Go ndl Order 97400 and modified by Council Order 99. 165. The City Solicitor Is authorized a celronlh the effort to establish a non-profit corporation to manage and operate the facility as well as such conbaar or agreements between this corporation and the City which may be necessary to allow for the effective operation of City Nursing, as outlined in Council Order 99-165. Pus suspension shall remain in effect until August 1, 2000 at whits time the City Council shall re-examine facility occupancy ahs, financial performance, and the progress made toward establishing a non-profit condonation. IN CITY WMCIL Macomber 13. 1999 Motion for Passage Made and seconded Passed Lmw TRK Autburiaing staff to suspend im- plementation of sesidential Pare at the city Pursing Facility Assigned to G" 9&ky� Ccumlor ITV OP MEMORANDUM �f C MAINEns. E 401 o«m FINANCE DEPARTMENT REET * ELNVIO-aaen Bonatl I. HNbr Flrenw Director To: Honorable Chairman Rod Members, Bangor City Council fstom: Ron Heller, Finance Dmwarn/frwaur Date: December 1,1999 Re: Bangor CHF breakeven analyses Page: l of2 I have recently wnshucred two breakeven analyses of the City Nursing Facility, based on the contention that we are financially better off -staying 60 course" at the facility than we ate adopting a residential were component that supplons a porton of &a existlng program. faulty, l have found that, with respect to maintaining current services at appro mustely the sone levels (in terms of both number and mix of beds), the facility needs to operate m approximately 88.9% of as ultimate 60 -bed capacity, or at an average occupancy of 53.3 tons for the next five years if it is M break even over Wm period. Attachment l illustrates this calculation. I have also calculated The point at which we should be economically indifferent between Braying the current course and moving m apattial residential care model. In so doing I have compared the RCF -based projections we have done (at 97% occupancy) with warned revenue and expenditure patterns. This calculation shows that, over a five year period, an average con}us of 52 (or 86,7/,) under ounent program paremeters is equivalent, in teats of no loss to the facility, to the 97% RCF-basalprojettions. Attachment 2 shows the man[% of this calculation. Datathusf Omugh6efiscalyearindiM"Ibatihefacilitybasavemged51.2occupiedbeds,an compared to 47.3 for the same period last year. Further, October end November occupancy levels were954.3,mKesentingmincrea»fiomlwt Oombermd Novwnbm's4T.3. Amealwase3 illustrates occupancy levels from July, 1990 through November, 1999. Finding said all this, please be aware that these conclusions are based upon darn taut predates Connie Pingley's arrival and therefore the changes she lass made and will make. Assuming these changes are by and loge Emerged toward improving the facility's financial performance, I think we can expect a favorable fie., downwaM) change in Mese break even points. As always, please feel free to contact me with any questions you might have co: Ulfaneu Norm Heimmm Comie Pingley my 0:4 100 5111 CNF BREAKEVEN POINT PresentC figura @ Various occupancy Levels F 00 F 01 F 02 F w FYw 0 100%accuwncy 95%occupancy g 809%cauwncy g 85% occupancy m 6 o - CNF POINT OF INDIFFERENCE RCF vs ReeeM fgumion@a8.]%Ocw"M F w F 01 FT 02 F m FT Of RCF ®g]%occupancy � Preaentccurea a<sz avarageaaiN census CNF OCCUPANCY, ALL PATIENT CATEGORIES July, 1990 Nronb Norm Nx,1939 m -vu ImAI m -v1 Im9S IDiwt ImA3141-vf jwA im-ve JM -95 mi -vs ImAS iw-m!m"mbvv J10148mi-vx 1mA lobus fto; Gee