Mayor to sign Heritage Place contract

Posted: Thursday, June 29, 2006

Mayor John Williams will sign a final bill of sale today on behalf of the Kenai Peninsula Borough, completing the purchase of Heritage Place, a Soldotna nursing home, from Banner Health.

Central Peninsula General Hospital Inc. will operate Heritage Place under the general oversight of the CPGH Service Area Board.

The borough assembly approved purchase of the facility in April and voted in May to expend the money. The final purchase price will be $998,999.

That’s actually $1,000 less than was originally approved. Administration spokesman Bill Popp said the borough was able to negotiate the slight reduction to account for the cost of administrative research leading to the deal.

The final price falls under the $1 million figure that would have triggered a public vote on the purchase. Last fall, peninsula voters approved a ballot measure requiring voter approval whenever expenditures reach the $1 million mark.

Although the nursing facility is estimated to be worth about $3 million, Banner Health sold the facility be-cause it was losing money running it as an independent operator.

Hospital officials say they won’t suffer the same problem because they’ll run it as a “co-located” facility, a designation that entitles CPGH Inc. to a higher per-patient reimbursement from Medicaid.

In addition, the hospital is eligible for two years’ of state funding at $1.45 million per year.

A signing ceremony is scheduled for 11 a.m. in the Heritage Place lobby.

Expected to attend are borough administration representatives, members of the assembly, Banner Health reps, and CPGH Inc., hospital service area board and Heritage Place Advisory Board members, as well as residents of the nursing home.

The 60-bed, long-term, skilled nursing care facility will continue to provide needed health care services to people needing intensive nursing care within the Kenai Peninsula, the borough said in a press release Wednesday.

CPGH Inc. intends to keep the existing staff and operations will continue uninterrupted during the transition, the borough said.

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