MERCER COURT County awaits ruling on $1M loan to nursing home operator

Woodland Place is due to make a partial bond payment in three days.
By MARY GRZEBIENIAK
VINDICATOR CORRESPONDENT
MERCER, Pa. -- A decision on whether the county can lend $1 million to a nonprofit corporation that operates the former county nursing home is in the hands of a judge.
Visiting Judge Harold Thomson of Pike County said Monday at a hearing in Mercer County Common Pleas Court that he would take the matter under advisement. He did not indicate when he would decide.
Commissioners Olivia Lazor and Michele Brooks, who voted to extend the loan, would like a decision before Thursday, when Woodland Place is due to make a partial bond payment.
The third commissioner, Brian Beader, voted against giving the loan.
The situation
Lazor and Brooks had filed a complaint against county Controller Thomas Amundsen, who refused to issue a check on the first installment of the loan, claiming it was illegal for a county to loan money to a private corporation.
The two commissioners contend that Woodland Place qualifies for county funds because it agreed to take over the county's legal responsibility to provide care to the indigent when it bought the facility.
Their attorney, Mark Longietti, called as a witness Drew Pierce, chief operating officer of Woodland Place. Pierce could only recall a handful of instances in which the nursing home provided care at no cost during his tenure -- all of them temporary situations. He did say, however, that as part of its responsibility to the indigent, Woodland Place has designated 13 of 15 independent living units for those who need them, regardless of their ability to pay.
During questioning by Atty. Donald McKay, who is representing Amundsen, Pierce agreed that when the County Commissioners Association of Pennsylvania recently loaned Woodland Place $2.3 million for construction, part of the loan had been used for operating costs and to pay debts.
Pierce admitted the nursing home is not putting up any additional security for the $1 million loan from the county.
Amundsen testified that he objects to the loan because he doesn't believe the county code allows it. He said he also believes extending the loan would be "bad business."
Medicare
Nancy Gobay, administrator of Trinity Living Center, Grove City, who also was called by McKay, testified that all free-standing nursing homes take Medicaid patients and that all nursing home beds are certified for Medicare assistance.
Medicaid is the government program which would pay nursing home costs for those who have exhausted their assets. Gobay said her facility, though private, takes indigent patients who are then assisted in applying for Medicaid.
In closing arguments, Longietti said the state has not abolished its statute so it evidently still takes seriously the responsibility of counties to provide care for the indigent even in spite of new Medicaid rules.
Judge Thomson reminded him, however, that the issue at hand was the legality of making a loan to a private corporation. Longietti said if counties are allowed to appropriate money to care for the indigent, they could "surely loan money for the same purpose."
Judge Thomson, however, called this "a big jump" and added, "I'm concerned about the legality of the loan."
In his closing arguments, McKay said the statute charges counties with care of the indigent "unless otherwise provided for." In 2004, under Medicaid laws, he said, the indigent are provided for.