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Nursing home generating interest from potential buyers

By Howard B. Owens

So far, one potential bidder for the Genesee County Nursing Home has submitted a letter stating an intent to make an offer on the 260-bed facility.

Interested buyers have until Sept. 23 to submit a letter of intent and until Oct. 6 to submit proposals.

So far, some 25 to 30 potential buyers have expressed interest in the nursing home, County Manager Jay Gsell said, but there's still just the one written intent to submit a bid.

The nursing home has been dragging down county finances for years, and financial disclosures included in the RFP package show the facility losing $2.9 million in 2011, $3.7 in 2012 and $4.3 million in 2013.

A non-government agency (whether a not-for-profit group or for-profit company) will have greater flexibility in generating revenue than the highly regulated government-owned facility, have greater leeway in reducing expenses, and won't be facing a squeeze on funding from the State of New York, according to county officials.

The county Legislature decided to sell the home to escape the ongoing financial drain on the budget.

The RFP states the facility will be sold to the most qualified, responsible bidder who meets a range of criteria. The highest bid won't necessarily win the purchase contract.

The current assessed value of the nursing home, on Bank Street, is $10.9 million.

Of course, currently no taxes are collected on the government-owned property.

Serious bidders will be invited to pre-proposal site visits Sept. 24, 25, 26 and 29.

Bids must include a $100,000 refundable deposit and provide financial statements and a letter of credit indicating not only the ability to close on the final purchase price, but to operate the facility at the current level or improved level of services after the purchase is completed.

The purchaser will be prohibited from involuntarily transferring or evicting any current resident of the nursing home.

Bidders must agree that the RFP process is subjective and the Legislature has the final say on whether to accept or reject any and all bids, and the county reserves to right to enter into negotiations with a bidder to modify a proposal.

The company must provide a company history, executive bios, information and qualifications on employees, experience with similar facilities, and plan for a smooth transfer of ownership.

There will be no public bid opening and bids won't become public until after a proposal is accepted by the Legislature. It's up to the company to declare any portion of the proposal that would be exempt from public disclosure under the Freedom of Information Law.

The sale of the nursing home has generated a little public opposition. There is a "Save the Genesee County Nursing home in Batavia NY" group on Facebook with 166 members currently.

The complete RFP package is available on the county's Web site.

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