Lake View Memorial Home announced this week that it is closing the Two Harbors nursing home, which means a move for 20 residents and the loss of jobs for 43 employees.
Lake View has begun working with its residents, their families and designated representatives to identify alternative housing options. Closure of the facility will not be complete until all residents have been safely relocated, a process that could take several months, according to Brian Carlson, president/CEO, in a press release this week.
"Demographics, consumer choice and rising costs are all driving a declining trend of hospital-attached nursing homes throughout Minnesota," Carlson said. "Like other providers in the Arrowhead region, Lake View Memorial is greatly affected by this trend."
Several factors have combined to create the current situation:
--Lake View's average daily home census has been declining since 1999.
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--Average nursing home increase in reimbursements over the past five years has been between zero and 2 percent, while the average expense increase during the same time period has been between 5 and 6 percent.
--Nursing home operations experienced an average loss in excess of $185 per day, per resident in 2008, at Lake View.
"It's come to a point where Lake View's board and administration must consider the future quality of health care in Two Harbors -- either stop the financial losses stemming from the nursing home or risk losing the entire Lake View Memorial operation, including the hospital, cottages and clinic," Carlson explained.
"After extensive review with industry consultants, and considering our community's critical need for acute hospital care, outpatient and emergency services, we've decided that we must close our nursing home operations."
The closure will result in the layoff of approximately 43 employees. To have the least impact on employee loss, positions that are currently open and unfilled will be eliminated first. Lake View will work with laid-off employees to help them find new jobs by hosting job fairs and tapping state resources for assisting dislocated works.
"Lake View's board of directors recognizes the hardships being placed on all involved," Carlson said. "Our goal is to treat everyone -- our employees and residents -- with compassion and dignity through this very difficult and emotional process."
The state of Minnesota has outlined a detailed process for the closing of a nursing home and relocating its residents. Under these guidelines, Lake View will:
- Provide residents with a resource list of relocation options.
- Meet with all involved to discuss the process
- Assist residents desiring to make site visits to facilities with available beds or other appropriate living options to which a resident may relocate.
- Arrange transportation for site visits within a 50-mile radius to which a resident may relocate, or within a larger radius if no suitable options are available within 50 miles.
- Provide available written materials about living options.
- Assume responsibility for transporting residents' possessions for all relocations within a 50-mile radius, or farther away if there are none closer.
- Assist with and pay for the transfer and reconnection of service for telephone or other necessary personal communication devices or services.
- Provide the receiving facility with complete records.
- Provide transportation of residents to new facilities within a 50-mile radius, or farther if nothing is available closer
- Provide a staff person to accompany the resident during transportation, if requested.
