HomeMy WebLinkAboutNorthern Lights Special Study Committee - Agenda - 6/19/2023
Bayfield County Administrator
117 E 5th Street, PO Box 878, Washburn, WI 54891
Ph: 715-373-6181 Fx: 715-373-6153
www.Bayfieldcounty.wi.gov
Mark Abeles-Allison, County Administrator
Kristine Kavajecz, Human Resource Director
Paige Terry, Clerk III
NORTHERN LIGHTS / BAYFIELD COUNTY
SPECIAL STUDY COMMITTEE
Ellen Avol-Law Mark Ehlers, Vice-Chair
Jeff Silbert Mary Dougherty, Chair
*** AGENDA ***
Dear Committee Members:
This letter is written to inform you of the Bayfield County Executive Committee Meeting
scheduled for 1:30pm Monday, June 19, 2023 in the Emergency Operations Center (EOC).
This meeting will be held in-person and remotely. Supervisors and the public will be able to
participate in the Meeting in person or via voice either by using the internet link or phone
number below.
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Contact Bayfield County at 715-373-6181 if you have access questions or email
Mark.Abeles-Allison@bayfieldcounty.wi.gov if during the meeting.
Any person wishing to attend who, because of a disability, requires special accommodations,
should contact the County Clerk’s office at 715-373-6100, at least 24 hours before the scheduled
meeting time, so appropriate arrangements can be made.
Notice is hereby given that in the event the standing committee does not have a quorum the
County Board Chair or Vice Chair may act as an ex officio member (County ordinance, Chapter
3, section 2-3-1 (c)). Notice is hereby given that a majority of the Bayfield County Board may be
present at the meeting to gather information about a subject over which they have decision-
making responsibility. This constitutes a meeting of the Bayfield County Board pursuant to State
ex rel. Badke v. Greendale Village Bd., 173 Wis. 2d 553, 494 N.W.2d 408(1993), and must be
noticed as such, although the County Board will not take any formal action at this meeting.
1) Call to Order
2) Introduction and Welcome Remarks; Purpose Statement Review
Conduct a comprehensive assessment of the short- and long-term viability of the Northern
Lights facility, which will include the market as a whole and the current non-profit model
that is being used by Northern Lights and create a clear delineation of the roles and
responsibilities of a Bayfield County and Northern Lights Board collaboration in time for
the Bayfield County 2024 budget considerations.
3) Discussion and Possible Action, Minutes from June 5, 2023
4) Public Comment: Limited to 3 minutes per person, 15 minutes maximum
5) Discussion Regarding 2022 Draft Financial Compilation and Updated Cash Flow Budget
6) Discussion Regarding Capital Plan
7) Guest Speakers,
a) Municipal Nursing Home, Mark Radmer, Administrator, Harbor Haven Health and
Rehabilitation, Fond du Lac, WI (130-230pm only)
b) For Profit Nursing Home: tbd
c) Rene Eastman
Topics:
1. What are key challenges for a 50-bed skilled nursing and 16 bed
assisted living facility in Washburn Wisconsin?
2. Top recommendations on how to maintain necessary staffing levels?
3. Are there organizational structures best suited to the current economic
and statutory scene for nursing homes and assisted living facilities?
4. Should facilities today consider expanding assisted living beds or
creating a dementia care wing?
5. What prominent cost savings or revenue enhancements are possible in
today’s environment?
6. How do you collaborate with your local government?
8) Discussion Regarding the Market Study Commissioned by Northern Lights
9) Discussion Regarding County Collaboration Options
10) Discussion Regarding Organizational Structures in Wisconsin:
a) Government: City County, State, Federal
b) Non-Profit: Religious, Corporation, Other
c) For-Profit
Should an organizational change be considered?
11) Next Meeting Topics
a) Brian Spielmann, Former assisted living owner in Hayward.
12) Next Meeting Dates:
• Wed July 12 at 1:30 p.m. (EOC)
• Monday, July 24 at 1:30 p.m. (EOC)
• Monday, August 7 at 1:30 p.m. (EOC)
• Monday, August 21 at 1:30 p.m. (EOC)
13) Adjourn
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Minutes of the
Northern Lights / Bayfield County Special Study Committee Meeting
1:30pm, June 5, 2023
Meeting was held Remotely through Microsoft Teams and in person in the Bayfield County
Emergency Operations Center, Washburn, WI
Members Present: Jeff Silbert, Mary Dougherty, Mark Ehlers, Ellen Avol-Law
Members Excused: None
Others Present: Mark Abeles-Allison-County Administrator, Paige Terry-Clerk III, Carrie
Linder-Bayfield County Human Services Aging & Disability Services Manager, Kellie
Pederson-UW Extension Community Development Educator, Kim Mattson-Bayfield County
Accountant, Michelle Stouffer-Acting Northern Lights Administrator, Rene Eastman-Vice
President of Financial and Regulatory Services for Leading Age Wisconsin
Called to order at 1:31 p.m. by Mark Abeles-Allison, Bayfield County Administrator.
Election of Chair and Vice-Chair:
Motion was made by Silbert, seconded by Avol-Law to nominate Dougherty as Chair. Abeles-
Allison asked for other nominations. No other nominations were made. A motion was made by
Ehlers, seconded by Silbert to close nominations and cast a unanimous vote for Dougherty as
chair. Motion carried.
1:36 p.m. – Dougherty took over the meeting as chair.
Motion was made by Dougherty to nominate Ehlers as Vice Chair, seconded by Avol-Law.
Dougherty asked for other nominations. No other nominations were made. A motion was made
by Silbert, seconded by Dougherty to close nominations and cast a unanimous vote for Ehlers as
vice-chair. Motion carried.
Purpose Statement: Abeles-Allison read the draft purpose statement to the committee. Ehlers
requested that the word “brief” be removed. UW Extension Community Development Educator,
Kellie Pederson, questioned the meaning of success in the statement. The committee discussed
the proposed purpose statement. After discussion, the committee agreed on the following
purpose statement: “Conduct a comprehensive assessment of the short- and long-term viability of
the Northern Lights facility, which will include the market as a whole and the current non-profit
model that is being used by Northern Lights and create a clear delineation of the roles and
responsibilities of a Bayfield County and Northern Lights Board collaboration in time for the
Bayfield County 2024 budget considerations.”
Meeting Schedule, Time, and Location: The committee set the following meeting schedule:
• Monday, June 19, 2023 at 1:30 p.m. (EOC)
• Wednesday, July 12, 2023 at 1:30 p.m. (EOC)
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• Monday, July 24, 2023 at 1:30 p.m. (EOC)
• Monday, August 7, 2023 at 1:30 p.m. (EOC)
• Monday, August 21, 2023 at 1:30 p.m. (EOC)
Northern Lights Structural Overview and History: Abeles-Allison gave a brief history on
Northern Lights. Northern Lights received a bond back in 2006 and was making payments every
month until 2016/17 when the facility began to experience financial troubles and asked to have
their loan payment reduced. Abeles-Allison reported that the county is expected to pay off their
original bond on the facility by 2027. Bayfield County Human Services Aging & Disability
services Manager, Carrie Linder spoke the number of services that have previously been
contracted through Northern Lights. Silbert informed the committee that it was recommended
that the facility reduce to 50 beds to save money on a bed tax. Vice-President of Financial and
Regulatory Services for Leading Age Wisconsin, Rene Eastman, explained that the bed tax
charges facilities $170 per bed per month and stated that facilities with 50 beds or fewer receive
an additional incentive in Medicaid rates for small facilities. Ehlers stated that the Northern
Lights Board had previously been under the impression that the facility was viable and
financially sound with no complaints but became aware of numerous issues that reflected the
poor financial state of the facility. Avol-law informed the committee that acting Northern Lights
Administrator, Michelle Stouffer, is currently in school to receive her license required to
continue as administrator.
Northern Lights Financials:
a) Statement Review, 2020 and 2021: Ehlers reviewed the 2020 and 2021 financial
statements. Northern Lights lost approximately $600,000 in 2021 and $346,000 in 2020.
Ehlers reported that the facility will be receiving an estimated $85,000 as a refund from
the IRS for Medicaid reimbursement rates. Silbert asked Ehlers if the refund would be
able to be used throughout the facility. Ehlers explained that Northern Lights intends to
use the funds to pay off the existing line of credit and their accounts payable.
b) 2023 Cash Flow Review: Ehlers reviewed the 2023 cash flow for Northern Lights and
informed the committee that the facility expects to be positive $100,000 by the end of the
year. Pederson asked if the COVID-19 funds that were received were an improvement or
a hindrance. Ehlers replied that the funds were an improvement as the facility would not
have been able to stay open otherwise. Silbert asked Rene Eastman, Vice President of
Financial and Regulatory Services for Leading Age Wisconsin, if other facilities
throughout the state were experiencing similar delays with the Medicaid reimbursements.
Eastman answered yes and explained that these reimbursements normally take a while
but have been delayed worse this year. The committee reviewed practices that Northern
Lights have implemented to help save money.
c) Capital Projects
Pederson asked what the primary focus of the committee would be. Dougherty stated that the
committee should not be involved in the operations of Northern Lights and should focus
primarily on the structure of the facility. The committee agreed.
How Nursing Homes Survive: Eastman reviewed a number of options that Northern Lights
may research to assist with increasing revenues, which included Medicaid reimbursement
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increases, private pay increases, and checking all other revenue sources to ensure revenue is
being collected. Other options included converting to an assisted living facility rather than a
skilled care facility and tightening the nurse staffing ratios. Eastman continued by explaining
there is no bed tax for assisted living facilities, but the reimbursement rates are lower. Beds that
are delicensed from a skill nursing facility are unable to be relicensed, so Northern Lights will
need to use its judgement on if the facility would survive as assisted living. A question was
raised regarding if a portion of the Northern Lights facility could be converted to an assisted
living facility while the rest remains a skilled nursing facility. Eastman answered that it was
possible, but there are additional challenges having the facilities in the same building as the
assisted living facility will need proof that it is integrated with the community and not an
institutional setting. Silbert asked if Eastman had any suggestions acquiring all of the accounts
receivables. Ehlers added that the facility is having difficulties receiving payment from private
pay clients that do not pay and have difficulties applying for Medicaid. Eastman recommended
that those clients work with the Bayfield County ADRC for assistance. Linder explained that the
ADRC has been assisting Northern Lights clients apply for Medicaid and stated that the county
did not have the staff to help all Northern Clients apply for Medicaid one-on-one. Abeles-Allison
asked if facilities are facing staffing struggles throughout the state. Eastman replied yes and
suggested that Northern Lights review the division of labor throughout staff to ensure that the
license employees are not overburdened.
Next Meeting Topics:
The committee discussed future meeting topics which included presentations from other non-
profit and for-profit facilities throughout the state to help Northern Lights compare its current
model to that of a facility of a similar size, reviewing the current model, reviewing other county-
owned facilities in the state, and exploring the potential of putting the facility up for sale so it
may be acquired by a for-profit buyer.
Next Meeting Dates:
• Monday, June 19, 2023 at 1:30 p.m. (EOC)
• Wednesday, July 12, 2023 at 1:30 p.m. (EOC)
• Monday, July 24, 2023 at 1:30 p.m. (EOC)
• Monday, August 7, 2023 at 1:30 p.m. (EOC)
• Monday, August 21, 2023 at 1:30 p.m. (EOC)
Meeting adjourned at 3:06 p.m.
Respectfully submitted by Paige Terry.
Walk in cooler in the kitchen needs to be completed soon – 2 quotes pending
Capital Improvements: 1-2 years
• Window replacement
- All windows and some exterior doors in facility
- Previous bids range from $163,000-$320,000
• Parking lot repair
- No quotes obtained
• Sidewalk repair
- No quotes obtained for entire repair. Individual repairs quoted as needed.
Capital Improvements: 5 years
• Tunnel/New building basement repair
- Dig up and reseal basement/tunnel
- Previous quotes approximately $180,000
• Control Update on upstairs air handlers
- 3 air handlers to be updated
- Previous quotes at roughly $15,000 per unit
• Control update on resident room radiator controls
- Previous quotes approximately $1000-$2000 per room.
- 45 resident rooms plus common area controls
- Total $45,000-$90,000 plus common areas
• Roof Inspection
- Potential repair/replace