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Cattaraugus County nursing homes continue losses in 2013

By Chris Chapman


LITTLE VALLEY – County lawmakers heard the final 2013 numbers for the two county-operated nursing facilities in Cattaraugus County, Wednesday, and the trend of lower equity and fiscal condition seems to be continuing.

While equity in the facilities in Machias and Olean is dropping, the collectible debt is also becoming harder and harder to bring into the coffers, according to Michael McCarthy, of the Queensbury, N.Y.-based, McCarthy & Conlon, LLP accounting firm.

“Because the balance of what is owed is in older receivables, it is becoming questionable on recovery of the funds and collections are tightened,” McCarthy said.

For 2013, The Pines at Machias facility finished the year with operating revenue about flat over the previous year, with $9,691,950. Expenses had fallen from 2012 through a collaborative effort between legislators and nursing home staff, but the total operating expenses still came out to $143,522,551, a loss of $3,830,601 for the year.

The Pines of Olean, with similar challenges as the Machias facility, saw an increase of operating revenue of about $800,000, to $9,351,688. Couple that with expenses rising by about $20,000, to $11,993,038, and the operation fell short by $2,641,350.

The two facilities, which are operating at about 99-percent capacity, are losing a combined $6,471,951, according to county nursing home director, Timothy Hellwig.

The Legislature has been meeting to find ways to save more money in the nursing homes as future considerations are explored.