A New York county home health agency is for sale after being unable to compete thanks to thousands of dollars of cuts in state reimbursements paired with increasing costs and decreasing revenues, reports The Daily Mail.
[Greene County’s Certified Home Health Agency’s] sale is a result of the loss of over $600,000 in state reimbursement over the last three years and the high cost of health care and pensions, according to Health Committee Chairman Joseph Izzo, R-Catskill.
“Coupled on top of the 2 percent tax cap that we have to operate under,” Izzo said, “it leaves our health care service unable to compete with the nonprofit services and this is happening across the state.”
A resolution for the acceptance of the proposal of the sale of the CHHA was passed during a special Health Committee Meeting Monday night.
Due to the ever increasing costs and decreasing revenues across the county the sale is an attempt to control the county budget and tax levy, while helping to find ways for the county to become more “cost-efficient,” according to the resolution.
The county has received three proposals from other agencies looking to buy, and Willcare, considered the “most qualified,” according to The Daily Mail, will enter a management contract with Greene County pending approval from the state Department of Health.
Once the management contract is in place, Willcare will assume the fees associated with the agency, including salaries and fringe benefits which total nearly $1 million. Greene County will pay the acquisition-minded home health agency a management fee of $5,000 a month.
The second part of the transaction will come after Willcare receives a Certificate of Need from the state DOH, at which point Greene County will transfer its operating certificate to Willcare for $125,000.
Buffalo, N.Y.-headquartered Willcare has 14 locations in three states, and says on its website it is “continually looking for opportunities to expand its business through acquisitions of existing home health care agencies.”
Read more at The Daily Mail.
Written by Alyssa Gerace