Campus of the Jewish Home to be Sold, and New Fund Established to Assist Elderly Throughout Local Jewish Community

 

 

The Board of the Jewish Home of Greater Harrisburg has asked the Jewish Federation to distribute the following letter on its behalf.

Dear Community,

With a mix of sadness – looking back at what we’re stepping away from – but also great excitement and optimism – looking forward at what we’re creating – the Board of the Jewish Home has announced its decision to sell its facilities.

The proceeds from the sale will be used to establish a new fund, under the umbrella of the Jewish Community Foundation of Central Pennsylvania, that will support not only the maintenance of Jewish customs and traditions for residents remaining at the Home, but also programs and services assisting elderly members of the Jewish Community and others throughout the Harrisburg area. This decision was reached after countless hours of analysis and research by the Home’s current officers and CEO and was approved by a supermajority of the Home’s Board.

The Home has been a source of pride and comfort in the Jewish Community since its founding in 1977 as a 60-bed skilled nursing facility intended to provide care to ill, infirm, and elderly Jews in the greater Harrisburg area. From the 1980s through the early 2000s, it grew and evolved into The Campus of the Jewish Home of Greater Harrisburg with 138 skilled nursing beds and a 58-unit licensed personal care home (the Residence). Over the years, the population of the Home’s skilled nursing unit has shifted from virtually all Jewish residents to just 10% Jewish. The overall population of the Campus is currently 20% Jewish.

In recent years the Home has faced systemic fiscal challenges that also are confronting many other nonprofit skilled nursing facilities. Principal among these is the increasing percentage of residents whose care is paid through Medicaid, and the persistent and increasing gap between Medicaid reimbursement rates and the cost of caring for these residents. Notably, these very factors were cited by two other Jewish nursing homes in Pennsylvania—The Charles Morris Home in  Pittsburgh, and the Abramson Center for Jewish Life in suburban Philadelphia—as the major reasons for decisions to close (Charles Morris Home) and sell (Abramson Center) their skilled nursing facilities.

More recently these systemic fiscal challenges were vastly exacerbated by the COVID pandemic, which imposed significant additional costs associated with protecting residents and staff. It also led to a sharp reduction in revenues due to a decline in hospital referrals to skilled nursing facilities such as the Jewish Home. Further compounding these pandemic-related challenges, efforts to rebuild the Home’s population have been stymied by severe and persistent staffing shortages driven by the extremely tight labor markets for healthcare workers. 

While federal stimulus dollars initially helped fill a portion of the hole created by the pandemic, the Home still experienced a loss of $1.2 million in fiscal year 2021 (with the benefit of $2.2 million in stimulus payments, without which our loss would have been nearly $3.4 million). This loss had to be covered by drawing on our cash reserves which have been depleted at the rate of $250,000 per month beginning in December 2020.

Without further federal stimulus payments, which have now ceased, our fiscal year 2022 loss has been projected to increase to $2.7 million, which would exhaust our cash reserves and deplete our endowment fund by 60%.  

Faced with these hard facts, the Board made the decision to commence a search for a buyer with both a strong commitment to maintaining high quality of care, which has long been our hallmark, as well as the resources and scale to deal with financial challenges that have become overwhelming, not only for us but for so many other stand-alone skilled nursing facilities.

Board President Richard Spiegelman described this decision as one that was “emotionally difficult and heart-wrenching” for Board members, some of whom have been involved with the Home going back decades, and many of whom have or had loved ones and friends cared for there. He added, however, “in a practical sense, the decision was not a difficult one because the Board saw no viable alternative that could sustain the mission of the Home and staunch the dissipation of its assets.”

Bids were sought, four were received, and a rigorous examination was conducted of the experience and proposals submitted by the bidders. In addition to price, attention was paid to other factors including: bidders’ track records in delivering high quality care; their financial capacity and demonstrated ability to successfully operate facilities they acquired over the long-term; their interest in maintaining Jewish traditions and connections with the local Jewish Community; and their commitment to respecting and dealing fairly with our loyal and devoted staff.

Based on this review, the Board concluded that Tryko Partners, one of the two highest bidders (and whose principals are themselves Jewish), presented the strongest offer considering both price and other factors. Moreover, Tryko-owned facilities are supported by Marquis Health Consulting Services, a highly skilled and vision-driven nursing home consulting company with deep experience, decades of practice, and a wealth of knowledge and ideas for adapting to the changing healthcare industry.

Accordingly, Tryko’s offer was accepted and a definitive agreement of sale was subsequently executed. Closing on the sale is expected to occur by the end of March.

Turning the page, we are now presented with an exceptional opportunity to expand the reach of services benefitting the broader senior population of the Harrisburg Area Jewish Community. To make the most of this opportunity we will be establishing a new “Seniors Fund” with the Jewish Community Foundation of Central Pennsylvania comprised of funds from the sale of the Home and existing Home endowment funds and accounts. The invested assets will be used to provide grants to support projects including:

 • Jewish-based spiritual and pastoral care for elderly residents in skilled nursing and other senior living facilities throughout the greater Harrisburg area.

• Expanding access to services and care for seniors aging in place or residing in senior living facilities.

• Kosher meals-on-wheels programs to ensure that seniors are not going hungry.

• Other projects undertaken in collaboration with the Jewish Federation or Jewish Family Service that will enhance the quality of life and serve the healthcare, cultural, and spiritual needs of the senior population of the greater Harrisburg Jewish Community.

Mike Doctrow, Chair of the Jewish Community Foundation, commented, “We at the Foundation have always valued and taken pride in our role as stewards of the Home’s endowment funds, and are gratified by the confidence the Home Board is now placing in us to invest funds comprising the new Seniors Fund and to help allocate grants from the Fund to expand our efforts to serve the older members of the local Jewish Community in perpetuity.”

And Abby Smith, Chair of the Jewish Federation of Greater Harrisburg, stated, “While recognizing that this was a difficult decision, we see it as both necessary and as paving the way for exciting opportunities, particularly in connection with programming to be offered at the planned senior center which will be an integral part of the upcoming Alexander Grass Campus for Jewish Life.”