U.S. Bankruptcy Court Judge Carl L. Bucki, chief of the Western District of New York, cleared the way for Grace Manor Nursing Home to be sold at a public auction on October 31st by local auctioneer, Cash Cunningham.
Grace Manor Nursing Home is located at 10 Symphony Circle. The facility is approximately 81,200 sq.ft. on 2.14 acres and has a 167 patient capacity. Ten years ago, the building underwent a seven million dollar renovation. It is currently assessed at $5.66 million. Marketing material describes the site as ideal for student housing, a hotel, residential or assisted living.
Other assets, including a 2,350 sq.ft. carriage house located at 64 Arlington and the contents of the nursing home will be sold separately via auction the same day.
Grace Manor Health Care Facility, Inc. was placed in receivership by the state Department of Health in 2008. In March 2009, the nursing home officially closed its doors. The auctioneer, Cash Cunningham submitted a proposal for a marketing campaign and auction, which the bankruptcy court has accepted. The auction will be held on-site beginning at 10 AM.
Get Connected: Cash Auction, 716.885.2200
Grace Manor is a good example of the flaws in our Medicaid and Medicare systems. They tried for years to increase the number of private pay / private insurance residents, because a nursing facility of this size cannot operate on the reimbursement rates offered by the State and Federal Governments. They were receiving supplemental funds to cover operating costs, but those were pulled during one of the many State budget cuts, and that ultimately led to their decision to close. It is sad, because this is a relatively nice facility, and it has potential to be repurposed to do more ambulatory and rehabilitation care for private pay patients. This is the only way that a nursing facility of this size can survive.
I support a universal healthcare system; however one of my concerns is the level of care offered when government reimbursement rates begin to drop. If more people move off private pay, especially the large number of government employees and government retirees in our area, what will be the impact to local health providers? My guess is that we will see local facilities, like Grace Manor, bought out by huge national companies who can leverage their size and lobbying strength to influence the government.