Stephenson County committee approves RFP to seek broker for nursing home amid cash shortages, critics urge referendum

The Stephenson County Nursing Home Committee voted to release a request for proposals for property brokerage and consulting services to explore sale or transfer options for the Stephenson County Nursing Center at Walnut Acres, saying the facility faces urgent cash-flow problems that threaten operations.

The vote to approve the RFP carried 3-2 on a roll call after more than an hour of public comment and staff reports. Committee members who voted to release the RFP said the county lacks the reserves and capital required to cover ongoing vendor bills and payroll; members who opposed the action urged more time for the new administrator and billing contractor to stabilize finances and said a public referendum may be required before any sale.

Why it matters: committee members and staff described a short-term cash crisis at Walnut Acres—about $29,000 in the facility bank at one point and roughly $1.2 million in accounts payable reported for the nursing home—alongside overdue vendor notices and near-term payroll risks. Committee leadership said those pressures, along with limited county reserves and previous management changes, drove the decision to solicit market interest from brokers and consultants.

The committee chair (identified in the meeting as "Chairman") told members that the board nearly called a special emergency meeting after learning there were not enough funds to cover an upcoming payroll and that staff had arranged an interfund loan as a stopgap. The chair said that, despite census gains and recent operational improvements, "cash flow is the problem right now" and that the county had "nearly exhausted the entirety of the advance on the levy." The chair added that the only viable way to secure immediate operating capital might be private ownership with access to reserves: "The only way to allow the residents to continue to stay there and the employees to keep their jobs is to put this in the hands of a private ownership that has that capital and excess revenue."

Staff updates and operational context: Marcos Perez, the facility administrator, reported that census has risen in recent months—from a monthly average in the mid‑40s last year to 54 on the day of the meeting—and that short‑term Medicare rehabilitation admissions have contributed to improved revenue. Perez said March admissions totaled 11 with four discharges and that the facility is aiming to push census into the 60s. He also described ongoing billing and collections work after the county transitioned to Quality Health Care Resources as a revenue-cycle manager and to MatrixCare as the electronic health record system.

Jennifer Alides, the facility business officer, described how some residents are admitted with "Medicaid pending" status while the county completes redetermination, and she and Perez said the new billing contractor is reconciling prior months and working down aging accounts. The committee heard that cash collections were slow to start after the vendor transition but improved in March, with deposits reported in the hundreds of thousands.

Financial specifics cited at the meeting included: approximately $1.2 million in accounts payable the treasurer reported as outstanding; $400,000 paid so far in 2025 to a management company (TCM); a past‑due food‑service vendor claim of about $205,000 and an older food‑service balance of about $70,000; and unpaid county liabilities including IMRF, Social Security and health insurance totaling "almost $351,000," as presented by committee leadership. The HVAC replacement project was budgeted with $200,000 of ARPA funds; staff reported a cost overrun of about $16,000–$20,000 that will be handled via a budget amendment and use of the advance on the levy.

Public comment: more than a dozen residents, employees and local advocates spoke. Casey Anthony, a former county board member, warned that any sale would likely require Illinois Department of Public Health (IDPH) approval and that IDPH has blocked similar sales in other counties. Ed Klein, a neighborhood resident, said the community wants the home to remain open and warned that prior attempts to sell had depressed census when the county did not publicly affirm the facility remained open for business. Cody Dorris, a staff representative for AFSCME Council 31, urged the committee to consider the impact on long‑time employees and residents and said staff morale has improved since the new administrator took over. Shan Stewart, a caregiver, described day‑to‑day resident care and said Walnut Acres feels like "home" for many residents.

Legal and procedural concerns: at least one public speaker and a committee member noted that state law may require a referendum to sell a facility that was originally built or acquired through a referendum, and the committee repeatedly referenced the need to understand IDPH certificate‑of‑need and approval requirements before any sale could be completed. Several speakers urged the county to place funding for the nursing center on a public ballot rather than seeking a sale.

Actions and votes: The committee took the following formal actions at the meeting:

- Approved a bad‑debt write‑off submitted by Quality Health Care Resources totaling $91,605.71 for prior‑period accounts deemed uncollectible; the motion passed by voice vote after the committee reviewed the accounts and timing issues identified by the billing contractor.

- Approved by roll call (3–2) the RFP for property brokerage and consulting services to pursue sale or transfer options for the Stephenson County Nursing Center (Walnut Acres). Roll‑call results recorded by the committee were: Mr. Whelan — Aye; Mr. Bush — No; Ms. Jackie — Aye; Mr. Hadley — No; Ms. Baker — Aye.

- Earlier in the meeting the committee approved routine claims for cash requirements totaling $260,308.68 by voice vote.

What the committee did not decide: approval of any sale, transfer, or buyer was NOT part of the action. The RFP release directs staff to solicit proposals from brokers and consultants; any sale would require subsequent board action, possible additional legal review, and applicable state approvals. Committee members and several public speakers repeatedly emphasized the difference between soliciting market information and approving a sale.

Next steps noted on the record: the RFP will move to the full county board for consideration; committee leadership said staff will pursue budget amendments to cover the HVAC final payment and will continue working with the billing contractor to reduce accounts receivable. Committee members said they expected further reporting on vendor demand notices, payroll projections and any IDPH or referendum implications before the full board makes a final decision.

Ending note: the meeting record shows a sharply divided committee and vocal community interest. Supporters of retaining county ownership asked for more time to evaluate the new management and billing arrangements; proponents of exploring a sale argued that outside capital and scale were the only realistic way to stabilize operations without repeated emergency transfers from the county budget.