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Letter to the Editor, Posted: 11/17/04

Commissioner explains sale

To the editor:

Last week the Chisago County Board made a decision that will improve services for our elderly residents. Commissioners Gustafson, Robinson and Olseen voted to sell the Green Acres nursing home to Ecumen (Board of Social Ministries) who have been operating the nursing home for the County.

The selling price is $1 and Ecumen will also purchase the 20-acre site west of I-35 from the County for what the County purchased it for at $123,000.
The new site is to develop a senior campus with a 60-bed nursing home, 50 units of assisted living and 20 beds of memory care. Phase 2 calls for senior independent housing and a medical clinic.

Chisago County put out an RFP (request for proposal) about a year ago for operations of the nursing home and developing a new senior campus. Ecumen was one of four proposals received and the one chosen by the County.

Because of underfunding, nursing homes throughout the state are having hard times making ends meet. The Medicare reimbursements which cover the costs of about 70 percent of the residents, is not keeping up with costs and Ecumen is incurring continued financial losses in operating the Green Acres facility. Their belief is that the new facility can be operated at a profit.

The way the proposal is structured, once the County gets the payment from Ecumen, the County is out of the nursing home business.

Ecumen, who owns and operates many nursing homes in Minnesota, is in an excellent position to develop the new nursing home facility. They are currently building a similar facility in Duluth as proposed for North Branch. They have also committed to work with the city of North Branch to address their concerns with the sale of the current Green Acres site, which will provide the equity for the new nursing home. North Branch is considering purchasing a portion of the site for a city park.

Bottom line, this is our best and last chance to provide services for our areaís elderly residents. If this proposal doesnít go through, the County will probably close Green Acres. I believe that Ecumen will now have the equity they need to build the new senior complex in North Branch providing our area with a new state-of-the-art nursing home and top quality assisted living.

Rick Olseen
Chisago County
Commissioner
Dist. 2


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