Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Nathaniel Witherell topic
No spam. Unsubscribe anytime.
Nathaniel Witherell projects $3.8 million operating loss; committee asks for contingency plan
Summary
Nathaniel Witherell managers told the BET Budget Committee the facility expects an FY2026 operating loss of about $3.8 million and proposed steps to grow census; committee members requested a contingency framework and set June 30, 2026 as a checkpoint for reassessing the FY2027 budget.
Nathaniel Witherell is projecting an operating loss of roughly $3.8 million for FY2026 amid a decline in average daily census from the low 170s to the low–mid 150s over the past 18 months. The FY2027 budget assumes an average daily census target of 175 as part of the facility’s recovery plan.
Management said the facility operates 202 licensed beds (156 designated for Medicaid long‑term care and 46 for short‑term Medicare rehabilitation) and that Medicaid reimbursements run about $100–$150 per day short of the actual cost of care. Corrections to MDS coding raised Medicare per‑diem rates from around $675 to over $800, and staff identified $72,000 in additional revenue tied to billing corrections. Accounts receivable collection rates are reported at 98–99 percent.
An ongoing drain‑pipe replacement project has taken roughly 12–16 beds out of service since April 2025; management projected that the project will continue to affect capacity through October or November 2027. Management told the committee that accepting a portion of previously declined memory‑care referrals—25 were declined in the first half of FY2026—could add about $1.1 million in annual revenue if one‑third of those referrals were admitted at current staffing levels.
Committee members expressed concern about the facility’s long‑term financial sustainability. They noted historical averages of about $2.1 million in annual operating losses before debt and capital, and about $5 million after debt and capital, over the past 12 years. The committee asked management to develop a contingency framework should census decline further and identified June 30, 2026 as a key checkpoint for evaluating progress. Members also observed that any reduction in licensed bed capacity would require state and federal regulatory approval.
On next steps, the committee requested an updated historical loss analysis from the Comptroller and asked management to return with contingency options and phasing details tied to capital projects before full BET decision day.
