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    Home Archives County to sell Sena-Kean Manor
    County to sell Sena-Kean Manor
    Archives
    April 18, 2006

    County to sell Sena-Kean Manor

    By MIKE SCHREIBER

    It appears Sena-Kean Manor will be sold for $3 million.

    On Tuesday, the McKean County Commissioners announced they have
    entered into an agreement with McKean Care Realty, L.P., for the
    sale and purchase of the former county home in Smethport. The
    facility is currently operated by Complete HealthCare Resources of
    Horsham under the terms of a lease and purchase option agreement
    with the county.

    Officials said the final sale and paperwork – including the
    completion of financing arrangements – likely won’t be completed
    until sometime in the middle of the summer. The commissioners,
    however, are slated to act on the measure during its next meeting
    Tuesday.

    “Complete HealthCare Resources has clearly proven its
    qualifications in this field and will continue to provide superior
    service and care to the residents of Sena-Kean Manor for many years
    to come,” the commissioners wrote in a statement released to The
    Era.

    The lease and purchase option agreement was originally signed by
    the county and McKean Care Realty, L.P.’s affiliate, McKean Care
    Services, L.P., on March 29, 2005. The purchase price was
    negotiated based on independent appraisals undertaken by both
    sides.

    Complete HealthCare, the parent company of McKean Care Realty,
    L.P., has been operating the nursing home since May 1, 2005.

    “The commissioners entered into that agreement based on the
    changing nature of the nursing home industry,” the press release
    states. “Specialized expertise and intense hands-on management are
    required to effectively provide needed care to nursing home
    residents.”

    According to County Administrator Richard Casey, when the county
    and Complete HealthCare signed the lease and purchase option
    agreement last year, part of the accord was that the purchase
    option would take place in a specified time period.

    “I don’t ever think in our minds that we felt Complete
    HealthCare wouldn’t purchase the home,” Casey said. “We (county)
    knew it was the right thing to do all along (sell the home). We
    weren’t changing our minds on that.”

    Casey said it was in the last couple of months that both sides
    arrived at a price and began hammering out the specific terms of
    the agreement. He added it remains to be seen what the tax payments
    on the property will be for the county.

    The terms of the agreement were not immediately available
    Tuesday. However, in January of 2005, former commissioner Tom
    Causer told The Era that under the agreement with Complete
    HealthCare, the county would pay $7,900 a month for services that
    include, in addition to management, assistance in accounting,
    training, regulation updates and evaluations, environmental
    services and other aspects of nursing home business and
    operation.

    In addition, the county agreed to pay the salary of the
    administrator provided by Complete HealthCare, county officials
    said at that time.

    “Currently, we are receiving a rental payment from Complete
    HealthCare, as well as a payment in lieu of taxes,” Casey said.
    “Next year, it will be on the tax rolls. What the assessed value of
    the property will be remains to be seen. They will pay their fair
    share of taxes to the county, school district and
    municipality.”

    Casey said both the county and Complete HealthCare performed
    independent appraisals, or an objective assessment of what the
    property is worth, to arrive at the $3 million figure.

    According to Casey, the commissioners intend to invest the money
    and leave the principal alone to produce interest income for use on
    any future capital improvement projects in the county.

    “There will also be money there for any collateral for future
    loans which might need to be taken out for capital improvements,”
    Casey said. “The money will be secure and not used arbitrarily or
    to pay bills. They want to let it work for the citizens of the
    county.”

    Before recently, the nursing home had historically struggled and
    was widely seen as a strain on the county’s budget. Complete
    HealthCare was one of six companies that submitted proposals to
    operate the home, and replaced Affinity Health Services of Indiana,
    Pa., which had been providing the county with consulting services
    since 1997.

    Officials said the home, situated along U.S. Route 6, has a
    total of 152 beds and employs around 130 people.

    Casey said he disagreed with the perception the home was a drain
    on the county’s bottom line.

    “I think Sena-Kean provided a positive cash flow for many
    years,” Casey said. “Only recently, with the skyrocketing cost of
    health care and the nature of operating nursing homes changing so
    much in recent years, has it become much more challenging and
    difficult as a part-time caretaker. You really have to dedicate
    yourself and resources to the details of managing a nursing home
    and such a complex operation.”

    When creating this year’s budget, it was the first time county
    leaders didn’t have to factor in the home in regards to
    expenses.

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