Neuhaus vows to keep Valley View open
By Edie Johnson
GOSHEN — The new county executive continued his pledge to keep Valley View nursing home open, dismissing charges by Democrats that he's changed his mind as "partisan political attacks."
The controversy began when Orange County Executive Steve Neuhaus said he was interested in forming a Local Development Corporation to look at the future of the county-owned nursing home. In many other counties that have sold their nursing homes, this is the first step in preparing a facility for sale. But Neuhaus said legislators must decide who will ultimately operate the home.
Jonathan Jacobson, the Orange County Democratic Committee Chair, said Neuhaus hid his "real intentions" on Valley View.
"Neuhaus is speaking from the old Ed Diana playbook concerning the finances of Valley View and the county," Jacobson said in a statement that reaffirmed the Democrats' commitment to keeping Valley View open. "Those figures were discredited before and will be in the future."
Opposition to forming a Local Development Corporation wasn't limited to Democrats, however.
"I can't imagine a single legislator voting for an LDC, especially when we have uncovered so many savings," said Legislator Mike Anagnostakis of Newburgh, a Republican. Anagnostakis chairs legislature's Health and Mental Health Committee, the subcommittee that oversees Valley View, and with Roxanne Donnery led an investigation into Valley View's management and finances.
"We have dug in and found things, multiple things, that have improved the situation," Anagnostakis. "In fact, Valley View is the only department whose costs have gone down over the past five years. Sure, the county has some financial issues, but it would be a darn shame if people would scapegoat the seniors. They are always the last thing that should be cut."
But he believes Neuhaus will come through on his promise.
"I have no reason to doubt him," Anagnostakis said. "I have every confidence that the county executive will do what he promised to do, but he has to come and work on it with us."
On Tuesday, the county executive's office issued the following statement to The Chronicle: “The county executive will maintain his pledge to seniors and the taxpayers of Orange County by keeping Valley View open, period. Partisan political attacks notwithstanding, the county legislature must ultimately decide who will operate the nursing home, and he will continue to emphasize that this operator provide the highest quality patient care in a safe environment.”
What would an LDC do?
A Local Development Corporation led the effort to sell Ulster County's nursing home. So what would forming an LDC in Orange County mean?
According to the New York State Commission on Local Government Efficiency and Competitiveness, LDCs are not obligated to participate in competitive bidding or comply with public procurement laws. "Technically, if a local legislative body decides to sell or lease a piece of property for $1 to an LDC, that land can then be developed free of the many rules and regulations that apply to municipal corporations," the commission states. "LDCs can construct, rehabilitate and improve properties and can take a range of other actions to aid business development, or meet other local needs."
Costs coming down
The former county executive, Edward Diana, was eager to close the nursing home. He called it a budget drain that would soon push the county into financial ruin. The legislature pushed back hard, with court challenges and appeals that ultimately established the legislature's right to fund the facility.
The bipartisan committee that investigated Valley View in 2012 condemned its management under Orange Administrative Services (OAS), finding that the facility was being run into the ground. Legislators on both sides accused OAS of driving up costs to force the sale Diana wanted. But after Valley View's first year with its new administrator, Laurence LaDue, legislators say costs have been cut in half.
"So far it looks like 2013 will be coming in at $12 million," said Anagnostakis. "Ed Diana had predicted $30 million for the year."
He said he foresees additional savings as the county looks into food preparation, utilities, and maintenance at the nursing home.
"We keep finding additional areas of improvement," he said. "Taxpayers are actually paying approximately $4.5 million a year to keep the facility in county hands, and those figures are getting better all the time."
In the next month or two, an outside auditing firm will confirm these budget statistics, he said.
"We spoke last year about Valley View being like a big ship, that takes a bit of time to turn around," he said. "It is well on its way, turning around."
He repeated that "no legislator should have any thought about forming an LDC. They (the executive branch) do not have the authority to do that without the backing of the legislature."