An Atlantic County official said Tuesday that he is considering selling the county-run Meadowview Nursing Facilities in Northfield after New Jersey's military and veteran affairs refused to take over the facility.
Atlantic County executive Dennis Levinson said the county is preparing to hear offers to privatize nursing homes, but is seeking assurances from workers.
“If we issue a request for a proposal, we will make it clear that stakeholders must provide warranty to existing staff and residents,” Levinson said in a statement Tuesday. “We want a 24-month employment commitment with benefits to existing staff. We won't turn our backs on them.”
Dolphin Avenue's multi-story facility features 180 beds, including 30 veterans, some of which were donated in 2023 by the local VFW Post.
The Atlantic County leaders did not say that leasing the property to operators was being considered. Although authorities have not issued a formal proposal, an investigation has been conducted in recent months, Atlantic County government spokesman Linda Gilmore told NJ Advance Media.
The New Jersey Army Veterans Affairs Office was approached by Atlantic County in August to acquire the facility.
The state agency did not respond to requests for comment.
Atlantic County operates the facility with a loss of about $5 million a year, Levinson said. He said there have been few nursing staff who have been forced to leave their beds empty since the start of the Covid-19 pandemic.
Meadowview will be a nursing home run by a second regional government that will be privatized over the past two years. Health Company Allerle assumed control of the Crest Haven Nursing and Rehabilitation Center in Cape May County in 2023.
Andrew Aronson, president and CEO of the New Jersey Healthcare Association, said that since the 1990s, the sale of government-run nursing homes has been underway in New Jersey.
The most successful and low-cost facilities are part of the Multi Property Franchise. According to him, these companies offer benefits such as centralized service, making the standalone facility model more obsolete.
“Independent nursing, which is not part of the chain, cannot use these tools to reduce costs, so we've been seeing more and more seeing whether these facilities sell or close to multi-purpose chains,” Aronson told NJ Advance Media. “The same goes for the county homes.”
Qualification programs such as Medicaid and Medicare have not kept up to rising costs. Some of these costs are related to increased costs for supply and personnel needs, including government mandatory positions such as infection preventionists.
Medicaid covers about 65% of nursing homes, while Medicare pays about 15%, he said.
“These payers may bring some increases each year, but the increase is not approaching to keep up with the rising costs,” Aronson said.
At one point, the National Guard served as alternative health workers at facilities during the pandemic. They were among more than 600 troops deployed as part of New Jersey's pandemic response.
Local officials said they were optimistic about the facility relocating to the New Jersey Army and the Department of Veterans Affairs as Atlantic County's veteran services and other healthcare needs are approaching.
“We are disappointed with this decision, especially as we had a lot of support from our veteran organizations, community members and our own employees who were looking forward to expanding the care of our veterans,” Levinson said.
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Eric Conklin can be accessed at econklin@njadvancemedia.com.
