Closure plans for local health center

BUFFALO, NY (Release) - Kaleida Health today announced that it has filed a closure plan for the Waterfront Health Care Center.

The closure is due to long term financial issues and continued cuts in reimbursement from New York State.

“While we wait for formal approval from the state, our priority right now is focusing on our residents and employees,” said Michael P. Hughes, vice president for Kaleida Health. “In the coming weeks, we will work with the residents and their families to determine the most appropriate setting to meet their care needs. For our employees, we are working with 1199SEIU on potential placement and opportunities.”

Kaleida Health will work to place the residents in appropriate settings (i.e. Kaleida Health’s Deaconess Skilled Nursing, Millard Fillmore Gates Circle Skilled Nursing). A major emphasis will also be placed on home care, utilizing Kaleida Health’s Visiting Nursing Association.

1199 SEIU United Healthcare Workers East represents the staff of Waterfront Health Care Center. Over 4,000 nursing home workers in Western New York are members of 1199 SEIU.

Kaleida Health filed an official closure plan with the New York State Department of Health on Tuesday, November 24, 2009. It is awaiting formal approval to close.

New York State has continually reduced the reimbursement for long-term care, and is reducing long term care beds across New York, advocating for alternative levels of care (assisted living, home care, etc.).

This has been promulgated and mandated through the Commission on Health Care Facilities in the 21st Century, also known as the “Berger Commission.” (see pages 48-57, 212-217 as well as Appendix 4, A4-1 through A4-13).

Because of this, the Waterfront Health Care Center fell into financial peril.

The financial losses have started slowly but have escalated very quickly. In 2004, the facility turned a $1.4 million operating profit. Over the last three years, the long term care facility has lost in excess $2 million.

In 2010, if the facility were to remain open, it would lose almost $2.0 million.

Since 2007, Kaleida Health has lost approximately $5.0 million operating its long term care division.

The Waterfront Health Care Center is a 160 bed facility located at 200 Seventh Street in Buffalo. A subsidiary of Kaleida Health since its inception in 1998, it originally became part of the Buffalo General Health System in 1990.