LAWRENCE COUNTY Nursing home company fired

The county is facing a deficit because the nursing home sale did not occur.
By LAURE CIOFFI
VINDICATOR NEW CASTLE BUREAU
NEW CASTLE, Pa. -- Lawrence County has severed ties with a nursing home management company that has recently come under scrutiny.
Americare Management Services Inc. of New Castle was formally terminated Thursday at the county commissioner caucus meeting.
The formal action was needed to follow up a letter sent by commissioners last week informing the company its services are longer be needed. The company left the county nursing home Wednesday, said Commissioner Brian Burick.
Burick said last week in a written statement that a series of problems emerged that made it clear Americare's management is no longer in the best interest of Hill View Manor or the county.
County commissioners, however, did hire Sandy McFarland, the administrator put in place by Americare, to continue as a county-employed nursing home administrator.
Burick explained that the county's problem with Americare was not related to McFarland's work, which mainly consisted of patient care and complying with state regulations. McFarland's yearly salary was set at $54,000, but that may change, the commissioner added.
Here's the situation
Problems with Americare stemmed from the handling of private money paid to the county by patients, Burick said. County officials are concerned that money may have been deposited into the account of Sylvan Heights Realty Partners, a group buying the nursing home. Sylvan Heights has some of the same partners as Americare.
County Controller Mary Ann Reiter is now conducting an audit of those funds. Two county employees were placed on administrative leave during the investigation. One has since returned to work, Burick said, but the chief financial officer is still on paid leave.
The sale of the home and nearby property was put on hold by the Pennsylvania Department of Health after concerns about the money were raised.
Burick said the sale is now unlikely, and the county faces a financial crunch.
Commissioners had budgeted $470,000 from the sale of the home and land into the 2003 budget. They also failed to budget for expenses related to the home's operation through the entire year because they believed it would be sold, Burick said.
Burick decline to say how the county plans to make up for those unbudgeted items.
cioffi@vindy.com