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Hillsdale Medical Care Facility reports IRS settlement, bond payoff and staffing shortfalls
Summary
Facility administrator told commissioners the nursing facility posted $4.4 million in non‑operating revenue after an appeal of a federal employee retention credit, will finish paying an $8 million bond in November, and continues to limit 19 beds due to staffing shortages while occupancy sits at about 92%.
The administrator of the Hillsdale Medical Care Facility presented annual operations and finance figures to the county board, reporting an IRS settlement tied to an employee retention tax credit and outlining capital work and staffing challenges.
Terry, the facility administrator, said the facility and its accountants appealed a prior IRS disallowance and settled for 80% of the initial credit plus interest, which resulted in $4,398,270 being booked in non‑operating revenue for 2025. "We settled with the IRS for 80% of the initial credit plus interest," Terry said.
Terry told commissioners the county will complete repayment of the facility's $8,000,000 bond in November, concluding the remaining obligation on a 2007 addition. He reported a current census of 140 residents, an occupancy rate of about 92% and an operating mix with a Medicaid daily rate of $379.38 plus a quality add‑on of $59.65 and a private‑pay rate of roughly $440 per day.
The facility has 19 beds classified as 'not available' because of staffing limits; leadership said the nonavailable‑bed program is intended to help recover capacity after the pandemic and the goal is to return those beds to service as staffing allows. Terry also described investments in infrastructure — a full parking lot reconstruction, water softening upgrades and the addition of three of five satellite kitchens — and technology improvements including fiber connectivity and improved Wi‑Fi for residents.
Commissioners asked about the parking lot cost (Terry estimated just under $100,000) and about whether changes to how the state reimburses direct care incentives might affect the facility's rates. Terry said possible changes to Medicaid reimbursement accounting (GASB 103) would change revenue presentation without affecting cash flows.
No formal county action was taken; commissioners heard the report and asked follow‑up questions about bonding and staffing.
