Lake County Board Considers Awarding Winchester House Contract to Health Dimensions Group

A Lake County panel of healthcare professionals and county personnel will recommend Health Dimensions Group as the company to manage day-to-day operations at , a nursing facility owned and operated by Lake County.

The panel has submitted its recommendation to contract with Minneapolis-based Health Dimensions Group to Lake County Board. A presentation outlining this recommendation will be discussed at a county board committee meeting next week. If approved, the county would retain ownership and oversight of the facility.

" has been providing excellent care to Lake County residents for more than 150 years, and the focus of this proposed change is to preserve that mission for years to come. In order to do that, we have to consider and evaluate other options so that can be financially self-sustaining," said County Board Chairman David Stolman. "HDG has extensive experience with transitioning county facilities to HDG managed facilities and has a proven track record of improving the quality of care at those facilities. Additionally, HDG has a history of retaining current employees during these transitions."

Two Companies Responded to Bid
. The panel reviewed Health Dimensions Group 's quality of care surveys, performance records, financial records, and conducted announced and unannounced visits and interviews. The panel recommended Health Dimensions Group because of its broad experience operating 22 skilled nursing facilities in four states, and its experience acquiring and operating county skilled nursing facilities with a larger Medicaid population. (Five facilities previously were operated by counties.) The panel was also impressed with Health Dimensions Group's performance outcomes and high satisfaction ratings from residents and families. 

"We visited five HDG locations. These site visits provided assurance that HDG will partner with the Lake County Board to not only sustain the mission of , but to actively position it to thrive, despite a very challenging senior living environment," said Ric Olson, senior living professional and advisory board chair. "It is evident that HDG has a passion for serving seniors and making a difference each and every day."

About four years ago, the county board approved moving forward with constructing a new facility because the current facility is more than 40 years old and in need of repair, which would be very costly. As part of that process, the county board established the advisory board to evaluate the facility's operations, finances, market position, and other factors. The advisory board consists of individuals with healthcare and financial expertise, and two members of the county board.

Preserving the mission of Winchester House

Extensive financial analysis showed the financial model was not sustainable, primarily due to cuts in Medicare and Medicaid, and higher personnel costs from traditional government employee benefits, and employee wages. is partly funded by a property tax levy (approved by voters in 1982), reimbursements from Medicare and Medicaid, and private payments from residents. Therefore, the advisory board recommended exploring other management options to control costs and preserve the mission of .

" is a crucial safety net for the vulnerable elderly and disabled people of Lake County. The Lake County Board approved building a much-needed new facility, but before a new facility can be built, we must find better way to manage the costs of operating a skilled nursing facility," said Michael Knight, Advisory Board member. "I believe that we have found a firm that will bring expertise and professional management, enable us to fulfill our priorities of preserving the legacy of , and will continue to treat employees with the respect that they deserve. Additionally, by providing a sustainable cost structure, this will enable us to build a new ."

The county board is expected to vote on the issue at its October meeting.

— Information provided by Lake County Government.