Monday 3 October 2011

Nursing home deep in debt on top of county shortfall

By Laura Incalcaterra
NEW CITY — The Summit Park Hospital and Nursing Care Center, which was touted as a money maker when the county executive proposed selling it a year ago, has been losing millions of dollars, according to two recent audits.
Summit Park had a $4.7 million operating deficit in 2010 and a $5.6 million deficit due to post-employment benefit obligations, according to a facility audit by the Manhattan-based KPMG.
But the $10 million deficit is only part of the story.
The facility has an overall $31 million deficit, including the $10 million, that has accumulated over a number of years, according to a county financial audit by the Harrison-based O'Connor Davies Munns & Dobbins accounting and consulting company.
The latter report also confirmed that the county had suffered a $52 million deficit as of Dec. 31, 2010.
Company partner Nicholas DeSantis advised Rockland legislators last week that the county should add about $30 million to the $52 million to reflect the deficit that is likely to result by the end of this year.
The $52 million includes about $19 million loaned to Summit Park by the county to allow the facility to continue operating.
Rockland legislators have reacted to the deficits with shock and anger.
But County Executive C. Scott Vanderhoef said routine audits have always made it clear that Summit Park has a track record of both profits and losses.
He said he'll be taking that record into account as he finalizes the details on his proposed 2012 county budget, which is due to the Legislature in three weeks.
A fellow Republican turned staunch critic, Legislator Ed Day, R-New City, said Vanderhoef had not indicated there were significant financial problems at Summit Park.
"Everybody can hide behind the hieroglyphics of the numbers," Day said. "We're being told by the county executive branch and the county executive himself that everything is fine."
Day is not alone in his concern about Summit Park.
Several legislators last week nodded in agreement when Legislator Patrick Moroney, R-Pearl River, turned to them and asked if they too were under the impression that the facility's finances were in good straits.
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