D ANIEL P.

M C C OY
C OUNTY E XECUTIVE

C OUNTY OF A LBANY
O FFICE OF THE E XECUTIVE
112 S TATE S TREET , R OOM 200 A LBANY , N EW Y ORK 12207-2021 (518) 447-7040 - FAX (518) 447-5589 WWW . ALBANYCOUNTY . COM

C HRISTINE Q UINN , ESQ

D EPUTY C OUNTY E XECUTIVE

MEMORANDUM
To: From: Date: RE: All Albany County Legislators Albany County Executive Daniel McCoy November 13, 2012 Albany County Nursing Home/Upstate Services Group Negotiations

Negotiations continue with Upstate Services Group and I wanted to update you on our progress, as well as remind you about our senior leadership meeting with all legislators and USG tomorrow (Wednesday, November 14th) @ 4:30 p.m. in the Cahill Room. We will be scheduling an opportunity on Thursday, November 15th for any follow-up questions that come out of the Wednesday meeting with USG. The budget I presented includes USG running the Albany County Nursing Home. This is an option which protects our vulnerable seniors, protects our taxpayers and accepts responsibility to put Albany County on track and save us $60-80 million over the next ten years. My budget to you included funding for ACNH for the first six months of 2013 during which time USG would be going through the CON process. If the Legislature does not approve a contract with USG once finalized, I have been clear that in order to pay for operating the nursing home for the second half of the year, the tax levy would have to be increased. In the interest of transparency and open communication, I have offered Legislative Leadership the opportunity on more than one occasion to participate in negotiations with USG and they have repeatedly declined. There has been some discussion about a $12 million dollar loan that is part of the negotiation. This money would be a low-interest loan, with a draw down schedule of 6 million dollars in 2014, 4 million in 2015 and 2 million in 2016. We are negotiating protections to keep the county insulated from liabilities. This loan arrangement is not a novel concept and has been part of other facility transfers. Also in the agreement, USG will be given 3 million dollars for capital expenditures. There is an inventory of those expenditures that need to be made and will be made ASAP, when the closing

occurs. On that short list are a new boiler and roof. These and other repairs need to be made and expose the County to a cost that would have exceeded 3 million dollars. USG will also have an initial operating loss and money will be used to get the facility up and running. As we have all discussed over the years, the Albany County Nursing Home is a critical safety net for our seniors. This will continue to be the case with USG. They have fantastic credentials turning around nursing homes in New York State that have financial or regulatory troubles and are a leading provider of high quality comprehensive health care services. They currently oversee operations of eleven skilled nursing facilities around New York State comprising a total of 1,600 beds. Our residents deserve a better facility one that will improve the lives of our residents. USG is the solution. I have talked to many legislators individually to answer any and all questions. I am committed to being transparent and available to answer your questions on this sensitive and complex issue.