File photo of the John J. Foley Skilled Nursing Facility...

File photo of the John J. Foley Skilled Nursing Facility in Yaphank. (March 25, 2008) Credit: Bill Davis

As lawmakers prepared to vote Tuesday on the controversial sale of Suffolk's nursing home, a bipartisan proposal surfaced to create a public benefit corporation to run the 264-bed Yaphank complex.

State Sen. Brian Foley (D-Blue Point) and Legis. John M. Kennedy (R-Nesconset) disclosed plans Monday to file a state bill authorizing the new agency - the Suffolk County Health Corp. - to take over the nursing home. The lawmakers also are exploring having the proposed agency take over Suffolk's 10 health centers, as well as drug and mental health clinics.

"This is an effort to preserve a critical public asset . . . in a lean, efficient and cost-effective manner," Kennedy said.

The move, backers say, will generate more state and federal aid and free the new agency to negotiate less costly contracts with workers. Foley said legislation would require a written request to state lawmakers from the county asking for the creation of the new agency to save the complex, named after his late father. "The name on the building is not as important as what goes on inside," he said.

But County Executive Steve Levy, pressing for the $36-million sale to a private operator, called the plan "unworkable" and a "last-ditch attempt by big spending legislators" to derail the deal.

The proposal arose as Suffolk lawmakers are expected to take a final vote Tuesday on the fate of the John J. Foley Skilled Nursing Facility, a battle that has been raging for two years. Levy said he is "very close" to having the 12 votes for passage. But presiding officer William Lindsay (D-Holbrook) questioned whether Levy has the votes.

Levy maintains that the bipartisan proposal is a "disaster" as the nursing home is not connected to a county hospital, like Nassau's, which would make it eligible for higher reimbursement. He said a public benefit corporation would not be accountable to taxpayers, would create more public debt and require millions of dollars of county subsidies. "This scheme just exacerbates an already bad problem," Levy said. "Why would we want to create another authority like the MTA? By simply privatizing, we can take the losses off the books."

The sale is Levy's biggest proposal to close the county's budget hole. Adding the $20 million in net cash and $8 million to $10 million in annual savings will permit hiring of new police, make nursing home workers eligible for early retirement incentives as well as $2 million in local transition aid to displaced workers, none of which will occur if the sale fails.

But Lindsay said creating an agency is worth exploring. "I think it's something we should certainly look into, and I'd hope the county executive would join us . . . rather than condemning it right away."

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