Copy

Good morning. Not all vaccine mandates are created equal. The U.S. Supreme Court put a temporary stop yesterday to a Covid-19 vaccination rule for companies with at least 100 employees. However, it greenlighted a separate rule affecting workers at health care facilities which get reimbursement from the federal government, i.e., most of them. It depends on who draws up the rule.
 
Forward BizNewsPA Forward BizNewsPA

 

Facing squeeze, nursing home to be sold



Things were tough for the Jewish Home of Greater Harrisburg even before the pandemic.
  • Like other skilled nursing homes, the nonprofit facility was spending more to care for residents than it was being reimbursed by Medicaid – $100 more per resident per day, according to Richard Spiegelman, president of the nonprofit’s board.
  • Then when Covid-19 struck in 2020, the nursing home saw fewer referrals from hospitals, which were cutting back on elective surgeries.
  • Hospitals cranked back up but the nursing home struggled to bring back staff and return to full capacity amid a general labor shortage.
  • It’s licensed for 138 beds but hovered around 100 residents throughout 2021, said Spiegelman. About two-thirds are covered by Medicaid.
  • By June, as the nursing home began dipping into its $4 million endowment, the board was exploring a sale.

What’s the financial picture: The nonprofit, originally founded in 1974, lost about $1.2 million last year, Spiegelman said, noting that the results have not yet been audited. 
  • The loss would have been about $3.4 million but for government stimulus programs.
  • The home was projected to lose $2.7 million this year, he said.

Who’s the buyer: After a competitive process that attracted four bidders, the facility is being sold to Tryko Partners, a New Jersey-based investment firm that has bought other nursing homes in Pennsylvania over the last few years.
  • Tryko tied for the high bid but was picked based on its track record, Spiegelman said. 
  • The board scoured federal data, for example, to gauge quality of care at other facilities owned by Tryko, as well as what happened after facilities changed ownership.
  • Families and patient advocates often fear care will decline after a nursing home is sold.
  • “That was a fairly rigorous process that we went through,” Spiegelman said.
  • He declined to name the other bidders.

What’s next: The deal is expected to close in mid to late March, Spiegelman said.
  • He declined to reveal the sale price but said it included the real estate and the business itself, including its licenses.
  • The campus at 4000 Linglestown Road in Lower Paxton Township includes the 138-bed nursing home, as well as a 58-unit personal care home called The Residence. 
  • The buyers pledged to continue the nonprofit’s mission and earn the trust of residents, families and employees.
  • “The Jewish Home and Residence provides outstanding care for the Jewish community and larger population,” Uri Kahanow, Tryko’s director of acquisitions, said in a statement.
  • Tryko's recent acquisitions include Westminster Village, a retirement community in Allentown that was owned by Dillsburg-based Presbyterian Senior Living
  • Tryko partners with a specialty consulting firm, Marquis Health Consulting Services, to operate its facilities.

Where are the sale proceeds going: Into a fund that includes the endowment for the nursing home, which is under the umbrella of Harrisburg-based Jewish Community Foundation of Central Pennsylvania.
  • The fund will support projects that benefit the health and well-being of senior citizens, regardless of religion, Spiegelman said.

What about the staff: The home employs about 200 people, including some employed by vendors for food, physical therapy and other services. 
  • Spiegelman did not anticipate any cuts, given the need for staff.
  • “The new operator is going to be straining every nerve to keep every employee that they can,” he said.
  • However, some senior leaders, such as the CEO and controller, may be let go, he said.

The bottom line: Nursing-home advocates have been complaining for years about inadequate payments from Medicaid, a state-run health care program partially funded by the federal government.
  • The issue has cropped up in the sale or closure of other nursing homes, according to a statement from the board of the Jewish Home.
  • The financial challenges also have persuaded local counties to sell their nursing homes.
  
SPONSOR BIZNEWSPA

Did you know that you can sponsor biznewsPA -- and reach more than 1,250 regional business leaders every weekday morning?


Quick takes



WHO'S GAINING FLUENCY: M&T Bank. Based in Buffalo, New York, the bank is converting three branches in Dauphin and York counties into what it describes as multicultural banking centers. The local conversions are part of the bank's expansion of the concept across the Northeast and Mid-Atlantic. The centers, which made their debut in 2020, offer banking and other financial services in the preferred languages of customers. 
  • In Central Pennsylvania, that will mean Spanish but it could also include Korean, Chinese and Burmese, according to M&T spokesperson Scott Graham. 
  • The Dauphin County branch is at 213 Market St. in Harrisburg.
  • The York County branches are at 21 E. Market St. and 1401 W. Market St. in York.
  • Also being converted are branches in Berks, Lehigh and Schuylkill counties.
  • Overall, the bank is converting about 100 branches to multicultural centers, bringing its total to 118. 

The background: M&T Bank has assets of more than $151 billion and a branch network stretching from Virginia to Connecticut.
  • M&T is in the process of buying Connecticut-based People's United Financial Inc., which would extend its branch network throughout New England into Maine.
 


WHO'S CROSSING THE LINEmulà group. The York-based architecture and engineering firm kicked off the new year by opening an office in Abingdon, Maryland, which is northeast of Baltimore along Interstate 95. The office is headed by a new hire, Stephanie Cash, who is mulà's director of Maryland operations. Also staffing the office is Charles Shaw, who was brought on board as vice president of engineering for both Pennsylvania and Maryland.
  • Cash and Shaw each bring more than 20 years of experience to their jobs.
  • mulà also has an office in Lancaster, which opened last year.
  • The firm provides services in architecture, interiors, geotechnical engineering, environmental, and construction materials testing/inspections.
 


WHO'S OWNING IT: Four new partners of PaySmart Payroll Service, a payroll service firm in Mechanicsburg. Employees Corinne Hempt, Jessica Watson, Diana Winand and Sara Wirt have joined Kelli Gift as partners and co-owners of the firm, which employs nine people overall.
  • PaySmart has more than 600 small-business clients and processes payroll taxes and paychecks for more than 10,000 people throughout Central Pennsylvania.
  • Pictured below, from left, are: Gift, Wirt, Winand, Hempt and Watson. 

 




WHAT'S RESTRUCTURED: The leadership at Cumberland Area Economic Development Corp., aka CAEDC. The agency has lost one longtime leader, added another and given existing officials new titles as it works to help businesses in a post-pandemic economy.
  • Shireen Farr, the agency's COO, left the agency last week to pursue new career opportunities. She had worked at CAEDC for more than 12 years.
  • CAEDC's CEO, Jamie Keener, has been named director of economic development, while marketing director Kristen Rowe has been named director of destination marketing.
  • Gary Scicchitano, who had been Cumberland County's pandemic coordinator, has been named interim executive administrator of CAEDC.
 


WHAT'S SPINNING OUT: IDP Consulting LLC. The civil engineering and building design firm is the latest spin-off from Wormleysburg-based Integrated Development Partners, or IDP The new firm is headed by Justin Kuhn, a partner in Integrated Development. He is joined in IDP Consulting by two newly minted partners: Terri Delo and Elliot Shibley. 
  • Over the last year, IDP has spun off a title company, Integrated Land Transfer, while partner Jonathan Bowser started a new construction company, Steel Works Construction
 


WHO'S HIRING: Keystone Agency Partners, a Harrisburg-based company that provides business services and support to a network of independent insurance agencies. The company has hired a chief human resources officer, Angela Pacheco. Pacheco worked most recently as a vice president for tiremaker Bridgestone Americas
  • Keystone Agency Partners was founded in 2020 as a joint venture between Northumberland County-based Keystone Insurers Group and affiliates of private equity firm Bain Capital
  • The company has made a series of C-suite hires over the last year.

 
Subscribe


Got questions? Got feedback? Interested in supporting BizNewsPA?
Contact us at BizNewsPA@gmail.com
Compiled and written by Joel Berg

 
Copyright © 2022 BizNewsPA, All rights reserved.


Want to change how you receive these emails?
You can update your preferences or unsubscribe from this list.

Email Marketing Powered by Mailchimp