Officials: Financial future brightens at Nathaniel Witherell
GREENWICH — After years of running deficits, the Nathaniel Witherell reports that it is now projected to turn a profit — just as it is due for scrutiny by the town Board of Estimate & Taxation.
The town-owned and -operated skilled nursing center and rehabilitation facility has lost millions in recent years, forcing the town of Greenwich to fill those deficits.
“The fact is, we are not only in the black, we are projecting revenue of $30 million for 2022, with operating expenses at $21.3 million,” John Mastronardi, Witherell’s executive director, said in a statement released Friday.
“At the current rate of operational function and fiscal protocol, we anticipate publishing net revenue for fiscal year 2022 of $1.1 million, exceeding all expectations by $3 million. This puts the Witherell in the strongest position that it has been in or many, many years,” he said.
It is the last municipally run facility of its kind in the state. And a BET committee has for years discussed the Witherell’s financial performance and its future.
That committee did not make recommendations as the Witherell struggled financially in recent years. But an outside consultant, Health Dimensions Group, presented the town with the option of transfering the ownership to a nonprofit.
Although no formal steps have been taken, the town issued a request for proposals, asking nonprofits to submit bids for how they would manage Witherell. A committee looked at the submitted RFPs and reported to First Selectman Fred Camillo, who has not announced what he will do.
Officials from the Witherell are slated to go before the BET’s Budget Committee on Friday morning as part of its evaluation of the proposed 2022-23 municipal budget.
Budget Committee Chair Leslie Tarkington said Monday that as a former member of Witherell’s board, she was “pleased to learn (it) is moving in a positive direction.”
“The Budget Committee expects to learn more details about Nathaniel Witherell’s fiscal year 2023 budget requests and whether the level of support from the town is now estimated will be needed,” Tarkington said.
The improved financial numbers can be attributed to better management, said Larry Simon, chair of Witherell’s Board of Directors. Mastronardi took over Witherell’s operations in late March 2020 just as the COVID-19 pandemic hit.
“There’s a greater control over costs now,” Simon told Greenwich Time. “We have also negotiated better vendor contracts that are more favorable to Witherell, including food, pharmacy and therapy. The third reason is a better allocation of our resources. We are providing excellent care and right-sizing our organization chart. It’s all better management.”
He said he and Mastronardi will make the case to the Budget Committee that the positive financial turn is sustainable.
“These are things that will be there permanently and work to our benefit,” Simon said. “We’ve received from the state an extra 10 percent on our Medicaid rate, which is like $30 a day, which is a one-time shot of $800,000. That will go away, but ... we can get our census up ... and that can be sustainable once COVID goes away.”
Since the pandemic hit, the census of patients at Witherell has typically totaled 171 or 172, Simon said. He said it needs to be 188 for the facility to sustain profitability, and as COVID decreases, he believes Witherell won’t have to spend as much time and energy on cases and on personal protective equipment. And with COVID cases decreasing, Simon said Greenwich Hospital will be able to accept more patients who could then be sent to Witherell for further recovery.
“That’s only 17 more people, that’s not a lot,” Simon said. “I believe, in the long run that not only is it sustainable but we should be returning money to the town under terms far more favorable than those considered in the RFP.”
Camillo requested $1.125 million in his 2022-23 budget plan to help fund Witherell’s operations. The next step is for the committee that looked at the RFPs to speak with Simon and other board members to get their input, Camillo said.
“The goal here is to have a facility maintaining the high quality care we’re used to there while addressing the fiscal issues,” Camillo said at his budget presentation last month. “We don’t think losing $4, $5, $6, $7 million a year is a way to conduct business, no matter whether its private industry or a municipality. This is a (town) department and that’s money that certainly could be spent on a lot of things. We want to fix that and maintain a quality-of-care component.”
The statement said that the announcement about the profits was made to “counter innuendos that periodically circulate about this award-winning facility.” The improved financial performance has come without a loss of quality care, he said.
“We have maintained an outstanding reputation in the region because of attention to detail and our fine services,” Mastronardi said in the statement “We treasure our seniors, some of whom taught in our schools, cared for our sick, and were our first responders, business owners, neighbors, and friends. Greenwich, be proud.”