County officials warn nursing center finances 'dire'; LOI for sale to be discussed at full board

Davidson County finance committee members said the county-owned nursing center is facing an urgent cash shortfall and vendor pressure, and asked board members to review a pending letter of intent (LOI) before the full county board meets Wednesday.

Committee members warned the facility is at risk of losing essential services if vendors stop work. “It’s about as dire as it possibly gets,” said a County board member who spoke during the finance committee meeting. The committee reported $327,616 in accounts receivable recommended to be written off and said several vendors have threatened to discontinue service or take legal action.

The status of key vendors and payroll was a central focus. The committee reported unpaid balances including $331,000 past due for current food service, $242,000 to a staffing agency (Employer Solutions), $207,000 to Ethical Nurse Staffing, $192,000 to the Stevenson County Liability Fund and $160,000 to the Stevenson County Social Security Fund. The committee said Matrix (a billing vendor) has $107,000 outstanding and that Matrix’s accounts-receivable cleanup work is complete, but Matrix had not been paid for 2025 as of the meeting.

Members said the county currently had roughly $28,000 in excess cash but faced a roughly $30,000 gap to meet payroll in about a week; they expected some deposits before payroll is due but said those would likely not cover major outstanding vendor balances. One committee member said if food service pulls out and no replacement can be found quickly, “we’re gonna have to move residents,” noting food service is critical and replacement providers may be hard to secure on short notice.

The committee urged members to review an LOI from a prospective buyer and asked that edits or recommendations be brought to the board meeting. The prospective buyer presented at a prior meeting and, according to committee remarks, told the county their intent is to retain employees and operate the facility; committee members called the prospective buyers experienced and “very professional,” but noted that a sale would shift operational control to the buyer.

Committee members discussed the practical effects of a sale. One member said selling the facility and removing it from the county’s books could significantly cut the county’s insurance premiums and liabilities; another noted selling could enable more immediate debt resolution and limit further county exposure. The committee did not adopt a formal sale at the meeting; the LOI will be forwarded to the full county board for consideration Wednesday.

Background material shared with committee members included a matrix billing report that recommended $327,616 be written off as uncollectible. Committee members asked fellow board members to review the treasurer’s email thread and the matrix report before Wednesday’s meeting.

The committee did not take a final public vote on sale terms during the finance meeting and did not approve write-offs at this session; those decisions remain with the full county board or are subject to future formal actions.

Affecting parties and immediate next steps include nursing center residents and staff, the county treasurer’s office, and multiple vendors that have outstanding invoices. The LOI and any motion to approve or reject sale terms will be on the county board agenda Wednesday.