SMETHPORT – Over strong opposition from County Controller Tom
Ball, McKean County commissioners Tuesday approved the agreement
for the sale of Sena-Kean Manor.
Ball protested that the $3 million sale price was too low and
that the law requires that such property be sold by competitive
bidding.
Commissioners approved the sale agreement with Complete
HealthCare Resources unanimously, with no discussion.
Reading from a two-page prepared statement, Ball said that the
appraisal commissioners had done was only of the real estate, and
did not take into account the full value of the nursing home as a
business.
He told commissioners that they should utilize the services of a
“certified valuation analyst who specializes in long-term care
facilities.”
After listing the “asset classes” of the facility, he concluded
that a new analysis would “… result in a much higher selling price
for this taxpayer-owned asset.”
Ball said that Guardian Elder Care had purchased Stone’s Nursing
Home in 1996 for $650,000, a sum which he said works out to more
than $21,000.
Saying that the Stone structure was in bad shape and that
Sena-Kean, with a new roof and air conditioning, plus other
improvements is being sold for less than $20,000 a bed.
“I have spoken to a consultant from Maryland who specializes in
health care facilities, three different Pennsylvania licensed
nursing home administrators and the president of an entity that has
15 different facilities in Pennsylvania. I gave each the basic
information regarding Sena-Kean to each one – the number of beds,
the age of the facility, average occupancy rate, approximates payer
mix.
“The estimate provided by the different industry players was
unanimous – McKean County is selling Sena-Kean Manor substantially
below market value.”
Commissioners countered with several sets of figures, one
showing the home’s operating margin about half that of the industry
average, and another a service evaluation showing the ratio of
value to earnings,
They also pointed out that the building “is over 30 years old
and has had no significant capital improvements during its
life.”
They also pointed out that the facility is not configured for
private pay residents, and that 80 percent of its residents are
paid for by the state, which pays lower rates. Chairman of
Commissioners John Egbert explained that the state is moving away
from providing skilled care as much as possible and that the home
is losing residents.
Ball’s statement concluded with “The County Code references
sales that include personal property to be advertised and
competitively bid. I request that the Commissioners step back and
rethink their decision regarding the sale of Sena-Kean manor under
the terms they have agreed upon.”
After the meeting, Ball, still contending the sale had to be
advertised and bid, said that he would consult with his solicitor
before deciding what course of action to take.
County Administrator Dick Casey showed reporters a section of
the County Code he said specifically provides for sales such as
this one, where at least two appraisals are made and a price is
negotiated.
Commissioners point out that the $3 million agreed upon price is
higher than the $2.4 and $2.725 million values put on the facility
by two appraisers.
The sale includes 10.2 acres of land; Egbert said CHR has plans
to build an assisted living facility on the property.
The meeting was sparsely attended, with only two persons other
than the regular attendees there.
