Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, November 22, 1995 TAG: 9511220041
SECTION: CURRENT PAGE: NRV-2 EDITION: NEW RIVER VALLEY
SOURCE: ELISSA MILENKY STAFF WRITER
DATELINE: BLACKSBURG LENGTH: Medium
Warm Hearth President John Sankey said funding reductions in the government programs could mean a decrease in reimbursements the nursing home would receive.
"If they reduce the reimbursement, then that decreases our revenue," Sankey said. "If our revenue decreases and our operating costs remain the same, then that's got to be offset."
Before it can build a nursing home, Warm Hearth must file an application for a certificate of public need, which would then be reviewed by a regional citizen's panel with a final decision from the state health commissioner.
Information such as how the nursing home would be financed, how much it will cost to operate, the facility's design and construction costs must be included in the application for the certificate.
In September, Warm Hearth administrators filed a letter of intent with state and local health officials, paving the way for a 60-bed nursing home. At that time, they had until Dec. 1 to file an application for a certificate of public need.
Since then, Warm Hearth had decided to raise more money in its initial silent fund-raising campaign and to explore other ways of financing the nursing home before applying for the certificate, Sankey said, especially in light of possible federal reductions. Warm Hearth has a year to apply for the certificate from the time it filed the letter of intent.
"We're trying to reduce some of the uncertainty of the whole process," Sankey said.
To raise money, nursing home officials had considered a partnership with either for-profit Montgomery Regional Hospital, part of Columbia/HCA Healthcare Corp. or nonprofit Carilion Health System. The groups met several months ago to discuss the potential collaboration. Sankey said there have been no further talks about a partnership, though he is not ruling out the possibility.
Other funding sources include a Housing and Urban Development loan program or conventional bank financing.
The nursing home would be part of Warm Hearth Village, which already includes independent-living town homes and apartments and an assisted care facility. Warm Hearth was granted an exception to build the nursing home earlier this year by the Virginia General Assembly, which had passed a moratorium on new nursing home construction.
by CNB