When WCA Home announced its closure, there were 22 employees and 17 residents in the 42-room facility. File image
Less than 48 hours into the new year of 2023, the Village of Fredonia and part of northern Chautauqua County were surprised with the announcement that the WCA House at 134 Temple Street would close by the end of March. What seemed like a stable, compassionate center for adult care and assisted living was ending more than 130 years of operation.
“The financial losses make it impossible to continue,” WCA Home board president Christine Davis Mantai said Jan. 2. “The decision to close after more than a century of excellent care in the center of the village is heartbreaking for every board member. Over the past year, the board has been searching for a larger non-profit corporation to keep the home running, but we have been unsuccessful.
It turned out to be the first domino to fall.
Ten months later, two additional facilities — nursing home and Lutheran Rehabilitation Facility Jamestown and Cambridge-Warren — will also announce closures in our two-county region. Someone else at Geary Heritage Ministries might acknowledge the current challenges they face as the health care pendulum continues to sway rural areas.
Although these closures are unfortunate, they are in line with what the rest of the United States is facing. According to a 2022 report from the American Health Care Association, more than 1,000 nursing home closures have occurred since 2015 — 776 of which occurred before the pandemic, and 327 during and after the devastating health emergency.
Imagine the problem Chautauqua County could face at this time if leaders did not have vision. Despite many protests, lawmakers in 2014 approved the sale of the Chautauqua County Home in Dunkirk — now the Chautauqua Rehabilitation and Nursing Center — because of the ongoing financial losses taxpayers were taking.
Those who supported the sale understood the unsustainable nature of the business. What we have seen in the last three lockdowns is even greater cause for concern.
In Warren, Pennsylvania, the top official at the city's Cambridge facility acknowledged that it could no longer sustain a failing model. “When we took over, the building was struggling,” said Mary Walka, CEO of Carpe VITA Senior Living. “This building has never really recovered from the coronavirus pandemic.”
Tom Holt, the esteemed president and CEO of Jamestown Lutheran Foundation, echoed those statements in its announcement just days ago. “We know this decision comes as a surprise to many but we are dealing with the harsh realities of the industry,” he said. “Difficult decisions must be made to keep other countywide facilities financially viable. There are not enough people, both residents and staff, to keep all facilities open and provide optimal levels of care. We cannot afford to go three years down the road; We do not pay our bills and are financially unsustainable as this negatively impacts other programs under the umbrella of Lutheran Senior Housing.
What's most worrying about the closures is that the region's population is not getting younger. According to US Census figures for Warren and Chautauqua Counties, the total population is 163,835. About 22.4% of the population — or 36,800 — are 65 or older.
Lisa Haglund, president and CEO of Heritage Ministries, told the Chautauqua County Legislature's Human Services, Planning and Economic Development Committee this week that although they have added residents in their operations, reimbursement rates are a losing proposition. For every Medicaid patient, the operation loses $130 a day. He loses another $100 a day for each assisted living patient.
Although the organization broke even in 2021 on revenue and expenses of $6.98 million, there have been signs in recent years of financial struggles that included a liquidation auction in September. “We need to diversify,” Haglund told county commissions. “We were at risk before the pandemic. … We have to be aware of that, and we have to be very transparent about that. There is no sugar coating where we are now.
Rural hospitals across the country have been downsizing for years due to financial concerns. Many have ceased operations in recent years while others have significantly reduced services.
Now, care facilities are feeling the pinch – in our region and nationwide. Some are closing their doors while others are trying to stay afloat.
This seems to be a very common outcome for the evolving healthcare sector. This is far from reassuring.
John D'Agostino is editor of The Post-Journal, OBSERVER and Times Observer in Warren. Send comments to jdagostino@observertoday.com or call 716-487-1111, ext. 253.
