MORRIS COUNTY — The Morris County Improvement Authority, after briefing the Board of Freeholders, today selected Allaire Healthcare Group of Freehold as the company best qualified to lease and run the county’s Morris View Healthcare Centre.
That decision will allow the MCIA to commence negotiations with Allaire which has offered the county $2.7 million annually to lease Morris View. (click here for website)
Combined with a reduction in costs to the county to operate Morris View, the lease could result in an initial total annual savings of $4 million to $6 million, and up to $8 million a year by the end of the decade.
The MCIA chose Allaire based on the unanimous recommendations of a special seven-member county panel, which reviewed eight proposals to lease Morris View based on evaluation criteria approved by the State Comptrollers’ Office. Factors considered by the panel, included financial viability, staffing capabilities, operational practices, and quality control.
Allaire previously purchased and is successfully operating a former Monmouth County nursing facility, which had been owned and managed by county government.
It is important to note Morris County will continue to own Morris View and will closely monitor the quality of care offered by Allaire, or any other company that would lease the 283-bed nursing home and sub-acute rehabilitation facility located in Morris Township.
The MCIA in March issued a Request for Proposals for the potential leasing of Morris View. It sought proposals from experienced private health care organizations for the lease of the 211,277 square-foot facility, including the transfer of the 283-licensed long-term care beds, now held by the county, through the New Jersey Department of Health.
Eight firms responded to the RFP. For a complete list click here.
The Board of Freeholders, when authorizing the development of an RFP for the potential lease of Morris View in 2016, stressed that the county is retaining ownership of the facility and insisted on specific patient care requirements to maintain the high quality of care now offered to elderly and disabled residents living there.
To ensure the choice of a high quality private health care provider, the freeholders voted to employ the MCIA to handle the RFP process, which could give the county more flexibility in choosing the most qualified respondent, rather than be tied to the highest bidder.
The Freeholders approved the leasing option last year following an independent study of Morris View. The study by consultant Perselay Associates projected that the tax-supported subsidy to run Morris View would rise from some $7 million incurred in 2016 to $15.5 million annually by 2020.
The study found that a potential leasing option of Morris View to a private nursing home company could be a viable solution to respond to the projected financial issues that are likely to affect Morris View, while also maintaining the high quality of care offered at Morris View.
The information compiled by Perselay Associates supplements a 2015 report by done for the county by consultants Marcus and Millichap.
To view the Perselay report, click here.
To view the Marcus and Millichap report, click here.
