A Resolution of the County of Allegheny, Commonwealth of Pennsylvania, authorizing the creation of a working group to study the John J. Kane Regional Centers for the purpose of evaluating the potential for their partial or complete privatization.
WHEREAS, the John J. Kane Regional Centers ("the Kanes") provide nursing, therapy, medical and other services to individuals residing on-site; and
WHEREAS, the Kanes are comprised of four regional centers distributed throughout Allegheny County, with centers in Glenn Hazel, McKeesport, Ross Township and Scott Township; and
WHEREAS, the Kanes are collectively operated and funded by Allegheny County through a variety of revenue streams; and
WHEREAS, for at least the past eleven years, the Kanes have collectively operated at a loss ranging from $1.2 million to $10.2 million per year, and from 2003 through 2011 alone these operating losses totaled $27.5 million; and
WHEREAS, although a review of the Kanes was completed and a Kane Action Plan formulated and released in late 2006, continued operating deficits amply demonstrate that its recommendations have either not been implemented or have proven to be ineffective; and
WHEREAS, this conclusion is further bolstered by the fact that, in 2006, the Kanes operated at a loss of only $1.2 million, while in the first four years since the Action Plan was released, the operating losses ranged from $1.8 million to $4.2 million, and the Kanes collectively lose approximately $2 million per year to this day; and
WHEREAS, while the County is permitted to fund nursing home care for dependents living within its borders, it is not required to do so by state law, See, e.g., 62 Pa.C.S.A. ยง2306, and Beaver County recently divested itself of its County-run nursing home; and
WHEREAS, it is the judgment of Council that continued public funding of the operations of the Kanes cannot be justified as fiscally responsible if the administration of the Kanes continues in its current form; and
WHEREAS, it is further the judgment of Council that alternative means of administering the Kanes should be investigated immediately, with particular attention to the potential for (a) selling the Kanes to a private service provider, (b) County partnerships with private service providers designed to increase occupancy levels, (c) fully leasing the Kane facilities to private service providers, and/or (d) retaining County ownership while contracting with a private service provider for day-to-day administration of the Kanes.
The Council of the County of Allegheny hereby resolves as follows:
Section 1. Incorporation of the Preamble.
The provisions set forth in the preamble to this Resolution are incorporated by reference in their entirety herein.
Section 2. Feasibility Study.
A. A fifteen member working group (the "Working Group") is hereby authorized for the purpose of conducting feasibility studies of the Kane Regional Centers for the purpose of evaluating the potential for:
(a) Selling the Kanes to a private service provider;
(b) Entering County partnerships with private service providers designed to increase occupancy levels;
(c) Fully leasing the Kane facilities to private service providers, and/or
(d) Retaining County ownership while contracting with a private service provider for day-to-day administration of the Kanes
B. The Working Group shall be comprised of fifteen members, with one member appointed by each Member of Council, provided that each appointee has demonstrable prior experience in the healthcare and/or financial fields. All Working Group members shall be residents of Allegheny County and shall serve without compensation, but the Working Group shall be provided with staffing assistance and information by County Council staff, the County Solicitor, the County Controller, the County Treasurer, and the County Office of Budget and Finance. The Working Group shall hold such hearings and conduct such other reviews and due diligence as it deems appropriate.
C. Personnel from the Kane Regional Centers are hereby directed to provide information to the Working Group as requested, to the extent that such information can be provided without violating applicable law regarding privacy or confidentiality, abrogating an attorney-client, physician-patient, or other legal privilege, or disclosing documents that are not otherwise available to the general public under the terms of Pennsylvania's Right to Know Law or other applicable statute.
D. The Working Group shall issue a report to County Council within six (6) months of the date of enactment of this Resolution, unless otherwise extended by County Council. Such report shall clearly provide recommendations regarding the subject matter of Section 2.A. of this Resolution, and shall include, but not be limited to, evaluations of potential market values of the Kane Centers in both sales and leasing transactions. In the event that members of the Working Group cannot agree to a single report, the Working Group may submit both a majority and a minority report comporting with the requirements of this Section.
SECTION 3.
If any provision of this Resolution shall be determined to be unlawful, invalid, void or unenforceable, then that provision shall be considered severable from the remaining provisions of this Resolution which shall be in full force and effect.
SECTION 4.
Any Resolution or Ordinance or part thereof conflicting with the provisions of this Resolution is hereby repealed so far as the same affects this Resolution.