Levy proposes $36M sale of Suffolk nursing home

Suffolk County Executive Steve Levy has proposed a $36-million sale of John J. Foley Skilled Nursing Facility in Yaphank, saying it will net the county $20 million after existing bonds are paid off.

The winning bid out of three competitors is New York City nursing home operator Kenneth Rozenberg of Centers for Care, which runs 10 nursing homes in the metropolitan area.

"This is even better than we hoped for - $36 million is hard to refuse," said Levy, claiming the deal will bring in $60 million in cash and county costs saving over five years.

Levy detailed the controversial sale to Democratic and Republican county lawmakers in separate conference calls Wednesday. The sale includes the five-story nursing home, the equipment, six acres around the building and the state nursing home license.

The sale price is less than the $39.5 million that the county has invested in the 15-year-old, 264-bed nursing complex, according to legislative budget analysts. In today's dollars, they estimate the nursing home value at $53.4 million.

However, Levy aides countered construction cost was $26 million and there have been $6 million in improvements since the complex opened. They added the nursing home's current book value - the property minus depreciation - is $18 million, and the sale price is double that. Levy said the sale will allow the county to save $8 million to $10 million a year it now spends on the nursing home. He warned without the deal taxpayers would face a dramatic property tax next year or significant layoffs and loss of services.

Levy said the deal requires that current patients be allowed to remain indefinitely, except where their condition changes and specialized care, not available at the nursing home, is needed.

The county executive also said the 260 employees will have a right of first refusal for jobs with a salary commensurate with industry standards. Levy also offered giving county employee incentives for six months to a year to subsidize their transition into private employment. He said details will have to be worked out with lawmakers. Levy also told lawmakers 50 workers may be eligible for early retirement and others may be absorbed into the remainder of the county workforce.

Cheryl Felice, president of the Association of Municipal Employees, lambasted the deal, claiming "Mr. Levy is attempting to fast-track this sale to hide the truth," and raised questions about the other so-far-undisclosed bids. She also claimed that published reports have shown that Rosenberg has slashed staff at other nursing facilities he owns.

Presiding Officer William Lindsay (D-Holbrook) said, "whether it's a good value or not remains to be seen." He said he has asked for an independent appraisal. If the county is selling the complex less than its current value, Lindsay said, "The taxpayers have every reason to ask, 'What the hell is going on?' "

Legis. Dan Losquadro (R-Shoreham), the minority leader, called its chance for passage "pretty good" since it seems to protect patients and employees.

But Legis. Kate Browning (WFP-Shirley), who has the nursing home in her district, said she has "serious concerns" new operators will look to cherry-pick the most profitable patients. "Originally this was the county almshouse for people who have no place to go," she said, "Now it's all about the almighty buck."