Commissioners Approve $120,000 Emergency Funding, Layoffs For Care Facility

Posted on July 28, 2011

The Erie County Care Facility received $120,000 in emergency funding from county commissioners at their July 21 meeting.  Five workers will also be laid off as a result of continued underutilization of existing bed capacity and cuts in state Medicaid funding.  The county expects to be reimbursed within 60 days. 

In the new state budget, which went into effect July 1, Medicaid payments to the Care Facility have been reduced from $150/day/bed to $131.16.  This will reduce revenues $300,000 through the balance of the calendar year.  It’s projected that the layoffs will reduce expenses by approximately $200,000.

The Care Facility has beds for 160 patients/residents.  Currently, 105 beds are in use.  Prior to the layoffs, the Care Facility employed 94.   Aramark Food Service employs an additional 16. 

Commissioner Shenigo commented that Erie County as a whole is licensed to offer more nursing home beds than there is need.  He also observed that there is shifting demand for different types of care.

The increasing popularity of the state’s PASSPORT in-home care program has reduced the need for institutional services provided to relatively healthy senior and disabled populations.  However, demand for the Care Facility’s newly remodeled Alzheimer’s and hospice wings remains high.