This spring, following a recommendation from the Winchester House Advisory Board, the County issued an invitation for bids from nursing home operators and two companies responded - HDG and Prism Healthcare. The panel reviewed HDG's quality of care surveys, performance records, financial records, and conducted announced and unannounced visits and interviews. The panel recommended HDG because of its broad experience operating 22 skilled nursing facilities in four states, and its experience acquiring and operating county skilled nursing facilities with a larger Medicaid population. (Five facilities were previously operated by counties.) The panel was also impressed with HDG's performance outcomes and high satisfaction ratings from residents and families.
Ric Olson, senior living professional and advisory board chair said, "We visited five HDG locations. These site visits provided assurance that HDG will partner with the Lake County Board to not only sustain the mission of Winchester House, but to actively position it to thrive, despite a very challenging senior living environment. It is evident that HDG has a passion for serving seniors and making a difference each and every day."
About four years ago, the county board approved moving forward with constructing a new facility because the current facility is more than 40 years old and in need of repair, which would be very costly. As part of that process, the county board established the advisory board to evaluate the facility's operations, finances, market position, and other factors. The advisory board consists of individuals with healthcare and financial expertise, and two members of the County Board.
Extensive financial analysis showed the current financial model was not sustainable, primarily due to cuts in Medicare and Medicaid, and higher personnel costs from traditional government employee benefits, and employee wages. Winchester House is partially funded by a property tax levy (approved by voters in 1982), reimbursements from Medicare and Medicaid, and private payments from residents. Therefore, the advisory board recommended exploring other management options in order to control costs and preserve the mission of Winchester House.
Michael Knight, Winchester House Advisory Board member, and Certified Financial PlannerŪ said, "Winchester House is a crucial safety net for the vulnerable elderly and disabled people of Lake County. The Lake County Board approved building a much-needed new facility, but before a new facility can be built, we must find better way to manage the costs of operating a skilled nursing facility. I believe that we have found a firm that will bring expertise and professional management, enable us to fulfill our priorities of preserving the legacy of Winchester House, and will continue to treat employees with the respect that they deserve. Additionally, by providing a sustainable cost structure, this will enable us to build a new Winchester House."
The county board is expected to vote on the issue at its October meeting.
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Contact Information:
Barry Burton, County Administrator 847-377-2250
Ric Olson, Winchester House Advisory Board Chair 847-997-7471
Michael Knight, Winchester House Advisory Board member 847-367-5191
