Over the last few years the Jewish Home For The Aged on Davenport Avenue in New Haven, Connecticut, has been struggling to pay their bills to stay in business. The local Department of Social Services said the nursing home had reported losing $845,000 in 2009, $830,000 in 2008, and $953,000 in 2007. After years of financial difficulties, the board Chairman Jay Kossman reported earlier this week that negotiations are underway to sell the nursing home, as a buyer already expressed interest. Kossman did not provide details as to who the possible buyer is, but the new ownership will most likely bring about some change. The Jewish Home For The Aged is a 226-bed nursing home which is currently a not-for-profit, but the pending sale would be to a for-profit company who would look to turn the place around so that it can stop bleeding money, become profitable, and continue to operate.
The primary reasons that the nursing home has had difficulty paying their bills are because of low occupancy rates and above average numbers of Medicaid patients. The nursing home has 189 unionized workers, and union spokeswoman Deborah Chernoff provided some interesting insight into the reasons why the home is losing money. Chernoff said that the most recent census had the nursing home at about 77 percent occupancy, but the industry minimum to stay profitable is 94 percent. In terms of Medicaid patients, the statewide average for Medicaid reimbursements is about 69 percent of patients, Chernoff said, but Kossman noted that the Jewish Home For The Aged has over 90 percent of patients that receive Medicaid reimbursements. The high percentage of Medicaid patients stresses the home’s finances, as they lose about $18 per day per patient, and need non-Medicaid patients to offset the loss. Over the next few weeks, it is likely that more information will come out regarding the future of the nursing home.
Ellen grew up on the east coast and spent 10 years working in senior homes during her 20's and 30's before taking a break to raise her 3 children. Now that her children are in college, Ellen uses her knowledge of senior care to help her write about all of the latest industry news. Ellen is a fabulous seamstress, and when not writing about the senior care industry, you can find her sewing away on her latest fashion creation.
