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Pine Valley reports it cannot meet county—s requested contribution target; staffing and occupancy cited
Summary
Pine Valley leadership told the committee it cannot generate the requested contribution equal to 50% of mortgage payments; staffing shortages, high contracted-staff costs, and occupancy constraints limit revenue, though Pine Valley maintains reserves that support county bond ratings.
Pine Valley administration responded to a county resolution asking whether the nursing facility could generate profits equal to 50% of its mortgage payment and return those funds to the county. The Pine Valley response to the Finance and Personnel Committee said it cannot meet that target today.
The committee read Resolution 22-92 directed to the Pine Valley board, which asked Pine Valley to explore generating profits equaling 50% of mortgage payments (a target in the packet the county characterized as a contribution of $741,456). Pine Valley—s response — summarized by committee members and Pine Valley staff in attendance — said that while the facility could have produced that level of contribution in earlier years (2017–2020, including with COVID-related dollars), the best current forecast is about 23% of that target.
County committee members and Pine Valley staff attributed the shortfall primarily to persistent staffing shortages, the high cost of contracted staff, rising wages and benefits, lower occupancy due to capacity and clinical needs, and limits on admissions. Chris Glassinger, identified in the packet as Pine Valley HR director, told the committee Pine Valley could not convert to a different residential license (a CBRF/assisted living model) without excluding many current residents because licensing and staffing requirements differ.
The committee also heard that Pine Valley has maintained operating and capital reserves. A committee member noted those reserves contributed to improved county bond metrics and cautioned the board to consider countywide fiscal impacts when discussing facility reserves.
No immediate county directive or vote to require Pine Valley to change operations was taken. The committee said the response will be forwarded to the Pine Valley board of trustees for further consideration and that additional follow-up questions prepared by an ad hoc committee have been transmitted to Pine Valley.
