Presbyterian Senior Care is giving up on two Delaware Avenue nursing homes and putting them into receivership.
At stake are Harbour and Hawthorne Multicare Centers for Living, a few doors down from each other on Delaware near Ferry. The homes have 217 residents who will stay in the buildings while a new firm called Receiver Services, LLC., will take over under State Health Department supervision.
Presbyterian Senior says it just can't make the finances work because 80 percent of the residents are on Medicaid and state reimbursements are too low to pay costs and the buildings need repair work.
President and CEO Karin Ziegler says the new operator has access to some operational economies of scale which her firm doesn't.
"We do have some sub-acute beds which would be short-term rehab beds. I would be surprised if the new operator doesn't attempt to increase their market in that area because that market is more profitable."
Ziegler says the nursing homes also have a floor for patients with dementia.