Fri
Nov 14 2008
10:16 am

Knox County is looking to sell the Hillcrest nursing home properties to Hillcrest Healthcare Communities.

Under the terms of the agreement approved by Hillcrest's board of directors and proposed by the Ragsdale administration, Hillcrest would enter into an owner-financed agreement to acquire the three properties for $6 million over 30 years at interest that starts at 1 percent and goes to 3.5 percent in the fifth year.
...
Hillcrest officials say they want to buy the properties in West, South and North Knoxville so they can use them as collateral to get loans to expand their facilities into new kinds of care for elderly people.

The state has censured Hillcrest nursing homes three times in the past two years for providing substandard care. It has cited more than a dozen nursing homes this year and 25 in 2007.

  • Questions: How can they use this property as collateral for loans when they will already have a 30 year loan against the property? Is the county going to finance the property thus only receiving a small portion of the $6 million over 30 years? What kind of restrictions, if any, will be in the sales contract? Will Hillcrest sell one or more of these properties in the near future for a huge profit? Will the properties be converted to condos?
  • Question: Should the Knox County Commission research further the offer of $18 million for the property from Cornerstone, based in Cary, NC?
  • Question: Can Hillcrest provide a consistent standard level of care to the elderly poor?
  • Questions: Should the Knox County Commission spend more time analyzing this issue? Should they hire a consultant/advisor?

It will be determined at a much later date if this sale will be good for the elderly or Knox County.

Opinari's picture

Hillcrest

Anything is better than the status quo for Hillcrest. My grandmother died last year as a direct result of the negligent care she received at one of Hillcrest's facilities. My anger has been somewhat tempered in the last 15 months, but I still harbor ill feelings over her lack of care there. Whatever happens with them, I sincerely hope the care they provide is an improvement.

StaceyDiamond's picture

Hillcrest

What is the deal that Hillcrest is some kind of sweetheart when last year they had all kinds of fines? I noticed they had a "legistalative breakfast " there recently.

R. Neal's picture

Knox Co. Mayor's office responds

Dwight Van de Vate asked me to post a letter to County Commission from the Mayor's office re. this topic. An excerpt:

I would like to take a few minutes to discuss the reasoning behind the proposed sale of the Hillcrest Nursing Home and Assisted Living facilities to the Hillcrest Hea1thcare Communities. Regardless of how you may choose to vote on the resolution Monday, it is important to cut through all the noise and misinformation.

Our goal in bringing this issue before Commission is straightforward: to determine how to best maintain the continuity of services for Knox County citizens who need Medicare or Medicaid funded nursing home or assisted living care, while at the same time, maintaining the County's revenues and assets. If our goal were simply to derive the maximum possible value from the property, then clearly the County's best option would be to terminate the agreement with Hillcrest, evict the residents, level the buildings, and take the property to the open market for development. Any such proposal would be completely unconscionable.

Here's a PDF copy of the entire letter with more background and attachments.

Alan Summers's picture

DVD doesn't know how it works?

This letter is absolutely ridiculous. Does he think that if the county decides to put this out for bids that people will be out on the streets. What stupid fear mongering is that! Hillcrest maintains their care as normal, puts their bid in with everyone else, and the winner takes over the operations of the nursing homes. Nobody is turned out on the streets, no buildings are torn down.

This all goes back to this...why we don't have more common sense in our elected officials?

MDB's picture

Cynical Answer

why we don't have more common sense in our elected officials?

Because the people who elect them don't have more common sense?

"I'm not a member of any organized political party. I'm a Democrat." -- Will Rogers

R. Neal's picture

County Commissioners express

County Commissioners express concerns:

(link...)

Commissioner Amy Broyles has previously expressed support:

(link...)

Alan Summers's picture

COMMON SENSE

Today's commission meeting is going to be a fun one.

The Hillcrest issue will get hot between the commissioners and mayor Ragsdoll. I talked with one of the commissioners recently and they told me that residents of Hillcrest have been calling pleading to vote for the cheap sale, I heard one of the messages. I think that the Hillcrest staff has put fear in the residents’ minds. It isn't like they will be thrown out in the streets if it sales to another company. Nursing home are bought and sold all the time in the U.S.
Hillcrest plans on bringing a small busload of residents to the meeting. There will be wheelchairs, walkers, and all kinds at the meeting today, a real circus. And I am sure that the mayor has been meeting with commissioners about this issue, except for the ones that normally oppose him.

Where is common sense in our local government?
Do the majority of our elected officials not have any?
6 million is a very good sweetheart deal. I looked up the tax records; west and south alone have an appraised value of over 6 million. And if you add north into it, that should at least double the amount for a fair price. It is absolute stupidity to not put this out for bidding.

jennifer's picture

When something like the

When something like the purchasing of a facility comes about in a nursing home it is only best to let the residents know what is going on and to give them heads up that there is a possible chance Hillcrest (there home)could own the facility. No Employee is scaring or putting fear in the residents! They have high hopes of Hillcrest staying Hillcrest because they know it as their home! We arnt just a longterm facility we are a family. The residents at hillcrest know the staff not as staff or workers but as family! The residents at hillcrest have a voice and mind of their own as well as you do! No circus, just a group of elderly citizens who care about what happens to there home! All ive been hearing is profit, money, too good of a deal, they are crazy! Stop thinking about finances and begin thinking about what really matters such as the current and future residents of Hillcrest! Sometimes a person can only see and determine what is best from the outside but being able to see the smiles on their faces day in and day out knowing they are happy,is what really counts!

reform4's picture

That's how they can use it as a loan. Duh.

If you buy a property for 6 mil and it can be appraised for 20 mil, that's how you use it for a loan.

Does Commission have enough backbone to stop this? Or is this just another prepaid sweetheart deal.

And what is up with the CTV streaming today???

Alan Summers's picture

CTV

It is glad to know that I am not the only one having hangups on the streaming finance committee meeting.
That will make listening to the commission meeting today very frustrating.

Anonymously Nine's picture

Follow the money...

(link...)

Larry Van Guilder has all the details. Any Commissioner who votes for this should be recalled. I hope Troyer gets grilled. After this years budget the gloves need to come off with Troyer.

This is another no bid bad for the taxpayers deal from Ragsdale.

Have you heard about the next deal to sell the public golf courses?

What's the plan here? Sell county assets at below value prices to insure a golden parachute for "he who reads to children"?

Unbelievable.

jennifer's picture

In Favor of Hillcrest

Many have stated that hillcrest should not be given the oppertunity to purchase because of improvements and imperfections of their past! No nursing home is perfect by any means!Hillcrest would have much greater chances to improve with the purchasing of the three facilities! Not only would the purchase of the facilities give Hillcrest the chance to provide all residents with better care than what they are receiving but provide them with more than just the bare minimum. Hillcrest does an outstanding job when it comes to the care and needs of all residents! No matter what the circumstances are, Hillcrest should be given the chance to be able to provide even better care for each resident! People need to stop looking at the dollar signs and start looking at whats best for the current and future residents of Hillcrest.

Justin's picture

How does a county wind up

How does a county wind up owning nursing homes to begin with?

RayCapps's picture

I believe the really short answer...

is that Hillcrest North was the site of the New Beverly Tuberculosis Hospital that closed in the late 1950's. So the county had a medical facility and was looking for something to do with it.

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