Pleasant Valley Manor will be privatizing its operations.
In an April 4 press release from Monroe County, the manor’s regulatory and fiscal challenges in the post-COVID pandemic healthcare environment were cited as the reason for the move.
“The most significant challenge PVM has faced during the years leading up to and during the pandemic years was the ever-increasing cost to operate the facility,” the press release said. “Those costs which came in the form of goods, services, staffing and many new regulatory requirements, were not fully covered by the State and Federal reimbursement PVM received.”
The release also stated that when COVID pandemic financial assistance ended in 2023, the funding gap significantly widened and the nursing home had to “pay for most of those cost increases since they are not covered by State, Federal, or insurance reimbursements.
"Realizing the long term effects of the pandemic on the operation of PVM the Board authorized a number of changes during the last several years to control costs, while not affecting the quality of care provided our residents,” the release said. “Those measures while effective were not enough to compensate for the ever-increasing costs to operate.”
“One of the biggest problems for Pleasant Valley Manor is we were a standalone facility. Being a county facility, every cost that occurred especially with the escalating costs from the COVID times the last few years, we had to bear the full value of,” Pleasant Valley Manor Administrator Drew Lutton told the Pocono Record. “Whether it was increased staffing required by the (Department of Health) or whether it was all of the goods, products and services we buy, we had to bear 100% of the cost."
Lutton said that the end of COVID funding left such a big hole that the gap could not be bridged, even with increases over pre-COVID reimbursements.
“So the decision to privatized PVM was purely a fiscal one, but it was based solely on the understanding that the company that came in had a great presence in Pennsylvania, New Jersey in the area get to healthcare, long term care, and rehab care as their main business, which this company does, and they would continue the traditions and the practices and even enhance PVM in the long run,” said Lutton. “So, the decision was made because primarily we just could not afford to pay the salaries, pay the benefits, cover all the cost to operate on the revenues that we receive which are controlled by the state and federal government.”
Monroe County Commissioner and president of the PVM board Sharon Laverdure said that privatizing will help PVM by allowing the parent company to use its resources to help fund and maintain the facility.
“For instance when they buy 'X' number of dollars of food, it’s not as expensive as if you are only one single facility,” said Laverdure. “It makes a difference when you own several facilities.”
According to Lutton, the Pleasant Valley Manor board hired a company to vet companies who were interested in taking over the manor, and Outcome Health was chosen to partner with the manor.
“It depends on our residents population, our resident payer mix, our expenses for the period, a lot of variables so I can’t comment on that,” Lutton said when asked how much money the manor is expecting to save per year.
Lutton said that a legal formal transfer date has yet to be established for the manor, and that it will be “several months down the road.” Once that date does come, Outcome Health will be responsible for PVM’s financial maintenance.
Lutton commended Monroe County for its support.
“They have done everything they possibly can to keep PVM going and we’re one of the few remaining county homes in the state left out of all the many that have been around all those years, so I would like to just say that the county commissioners and the board, PVM board, has been remarkably helpful and supportive to us through this and we fully understand and agree with the decision that was made,” said Lutton.
Laverdure said that Outcome Healthcare is hoping to retain the staff that PVM currently has, and that they respect them, understand the commitment that goes into what they do, and want to maintain the positive atmosphere currently present there.
Max Augugliaro is the public safety and government watchdog reporter at the Pocono Record. Reach him atMAugugliaro@gannett.com.