Date uncertain for Citizens, Montevue sale

Frederick County officials today announced that a for-profit company has taken ownership of operations at the county's nursing and assisted living centers.

The shift means that Aurora Health Management is assuming ownership of the finances for Citizens Care and Rehabilitation Center and Montevue Assisted Living. It also involves transitioning county employees at the centers to Aurora's payroll.

The operational transfer is the first part of a three-step sale to Aurora, according to a county news release. Though the $30 million deal approved last year by commissioners includes the building and grounds where the centers are located, the land is currently tied up in litigation. As a result, under an asset purchase agreement signed by commissioners, Aurora will initially lease the building and property, the news release stated.

The company would assume ownership of the building in the second part of the sale, while the land transfer would happen last, county officials have said.

The agreement between Aurora and the county also lays out the process for transitioning center staff to employment with Aurora. The employees will receive consideration of their current pay, acquired leave and benefits and will get health insurance through their current provider, CIGNA, according to the release. 

Commissioners President Blaine Young commented that making Aurora responsible for finances at the money-losing centers relieves a burden from taxpayers.

"As we have stated in the past, we know this has been a very emotional matter, but when a majority of this board was elected, we promised to address the difficult issues and make decisive steps to get our financial house in order," Young said in the news release.

Officials have agreed to pay Aurora $10.7 million in five installments so that Montevue residents who had depended on county subsidies can continue to receive care at the facility.

(42) comments

ijamsman

Yeah, losing five million dollars a year really "works"

ijamsman

Which is why we are the only county in the state to still be doing this. I guess every other county, including your beloved liberal bastion Montgomery (from which most of you moved here) is led by mean heartless politicians who don't care about their seniors.

ijamsman

I find it very interesting that some of the same "conservatives" who have trashed Obama and O'Malley for the failures of their healthcare plans seem to have no problem with government run healthcare when it is at the local level. Which is the last place it should be.

Extra Ignored

It worked for 140 years.

darththevader

I didn't see the headline about everybody getting thrown in the street

Extra Ignored

It's amazing isn't it that $10.7 million was only going to last for three years but now it it is going to last for five years because some of the MALF residents have already been thrown out in the street.

MCEDDE21

Regarding the employees at CCRC/MALF: In answer to specific questions from Commissioner David Gray and former President of the BoCC Jan Gardner at Tuesday's meeting, Blaine said that the workers all knew what was happening. Not so.

When the workers arrived at 7:00 AM today, they were told, for the first time, that they would no longer be employees of the County but would be punching in as Aurora employees. Likewise, their many questions regarding their benefits, pensions, and OPEB have not been answered.

Extra Ignored

I found this County/Aurora benefits document.

http://www.frederickcountymd.gov/documents/13/7755/Benefit%20Comparison%20AND%20Supplemental%20Benefit%20Comparison%20June%202013%204pm_201306101457395601.pdf

jmufb_49

Don't worry, we have obamacare and we got bin laden. That's all you we need.

joelp77440

Welcome to the wonderful world of loop holes. I knew this way around the sale issue but was afraid to post it, just in case the commissioners were reading.

What they did is sell the operation instead of the land/facility. Effective control goes to Aurora while the land and facility remain in control of the county. In short, Aurora becomes a leasee instead of owner of the building, at least until the sale is resolved.

The bad part for opponents to this transition, there is no legal remedy to block this transition. Sure, many lawyers will say they have a solution or represent people who want to litigate this for a fee, but it is a loser from the end. The only winners will be the lawyers who pocket the fees.

Extra Ignored

But a lease is limited by term of the contract.

While a sale is forever unless the county declares eminent domain.

averageterp

Legal action is not out of the question because the county did not seek bids

KellyAlzan

As I stated many months ago, and as I stated yesterday, Ba'Lane will lease the property to Aurora for $1.00 per year.
When I initially stated this many weeks ago, I was NOT joking, I was dead serious.
It's not a secret that Ba'Lane is receiving a healthy kick back for the deal, which Kirbie, Billie, and Paul will each receive a percentage of.
Since the land sale deal is falling to pieces, Ba'Lane is determined to get the kick back he has been counting on. And to do so, he must give Aurora a sweetheart deal on the lease. The less money that Aurora has to pay for the lease - the more they have to give to Ba'Lane.
Money is the root of all evil. Ba'Lane got so focused on getting his kick back that he got ahead of himself and did not take enough steps to avoid raising suspicions. He is not even trying to conceal this corrupt deal. He's like "well everyone knows I'm getting a kickback, watch me get away with it, so why hide it".
I assure you people this:
Ba'Lane will not get the votes to win in the upcoming election.
Billie will not get the votes to win in the upcoming election.
Kirbie will not be voted into office in the upcoming election.
Paul will not get voted for in the upcoming election.
Chuck Jenkins will be re-elected.
So 4 out of 5 is good, I can live with that.

Thomask

While I also think the current BOCC excluding David Gray are not exactly trustworthy, you make a serious accusation about kickbacks. Where is your proof? It is not right to accuse someone of anything unless you have substantiated backup.

squibmyer

[thumbup]

KellyAlzan

same was said about ba'lane doing an affair with the counter worker. And ba'lane denied it to the FNP. And stated on his show how disgusted he is that people are making crazy accusations about him and his family. And then he admits to Frederick Magazine that he is having an affair.

That's ok, it wont be long until he is a regular citizen just like you and I.......

Extra Ignored

He is "dating" and he is still "legally married" but it is not an "affair" AWESOME!

Young’s response: No affair. He’s been separated from his wife since August 2013, and dating a county employee. County human resources has cleared him of wrongdoing, he says. And no more kids; he had a vasectomy 10 years ago.

http://www.fredmag.com/showman-showdown/#sthash.eZQJfvFa.dpbs

teabiscuit

Wow - what's up with this? From the time I posted my previous comment (at 11:30) until now, the items contained under the side bar "related documents" have been changed. An additional document has been added (Continued Car Commitment Agreement) and the original document that I referenced as being only the press release has now been updated to be the actual "Asset Purchase Agreement". Interesting. Did the FNP realize they had put up the wrong document? Or did they just receive a copy of this agreement themselves - Ms. Gardner started asking for it on Tuesday. Either way - it would have been good policy to acknowledge that additional info has been added to the story. Tangled web?

dbjanda1

Why is there no competitive bidding for the operational business side ???...The sale

has not gone thru so why should Aurora have any preference over anyone else ???...

There's a lot that needs to be answered if not by the FNP then how about the Attorney

General's office...It's an election year and no better time to find the truth...Me

teabiscuit

Under the "related documents" in the column next to this article, there is an item titled "FCG Asset Purchase Agreement". From that title you would think that this is the agreement itself. No - it is just the press release from which this story was written. Question - Is the FNP playing the same semantics games that our BOCC President is playing? If so, nice to know they are both "playing from the same deck". Too bad the Frederick County taxpayers have apparently been banned from the "game" table. Hope voters remember these shenanigans in June - June 24th is the primary election and all the current BOCC have opponents running against them for the offices they are looking to jump to. My advice - vote for the opponent. At least then you may actually get someone in office who will play it straight with the taxpayers.

Extra Ignored

Here is the Asset Purchase Agreement dated May 1, 2014.

http://www.frederickcountymd.gov/documents/818/Asset%20Purchase%20Agreement%20Executed%20(1)_201405010809001941.pdf

Extra Ignored

The county is valuing the buildings at $25,000,000, the business assets at $4,600,000, and the real property (land) at $400,000 for a total of $30,000,000.

snaketrapping

What has happen to Frederick. It is not our town it is the people. I cannot wait to move away from here they will build, clutter, and pack the people in until there is no room left. It is all about money anymore. It is disgusting. As a daughter who took care of here of her senior mother who has recently passed and now have my senior father with me because he cannot afford to on his own this sell disgusts me and so does Blaine Young. Used to have high respect for him but now his head has blown up. Money that is all it's about anymore. To heck with the people I would even allow him to shine my boots. Shame on you for doing this Mr. Young hope you never have an elder parent to care for an I hope as you age you do not ever have to experience a nursing home.

Thomask

Bottom line... Blaine doesn't care about anything related to empathy, sympathy or care of the elderly, or helping our less fortunate citizens. He only thinks about his own considerations, and his own pocket.

SaveFrederick

When was the public hearing and vote to enter this agreement with Aurora? It looks like a secret deal and it stinks!

ALincoln

I recall Blaine Young once commenting on why the county should keep Montevue and Citizens when these institutions serve so few in our community. And yet, how much county money is spent on maintaining the public golf courses that also serve "so few"?

Nationally, only 8% of Americans play golf. So for the 92% of Frederick County residents whose tax monies go to pay for the other 8% 's recreation.......remember it is more important for the wealthy to hit a little ball around the greens than to take care of of elderly poor in Frederick County.

squibmyer

What county money goes towards which public golf courses?

MCEDDE21

It is the City-owned Clustered Spires Golf Club which received a $150,000 operating grant from the City of Frederick for the current year.

squibmyer

Exactly my point. There aren't "county" golf courses getting "county money".

Marylandgirl22

If Blaine Young expects us to believe this selling Montevue is going to relieve taxpayers of this burden, why are we paying Aurora almost $11 million dollars? Blaine is by far the most incompetent politician Frederick has ever seen. You've failed the people of this city over and over again.

"Officials have agreed to pay Aurora $10.7 million in five installments so that Montevue residents who had depended on county subsidies can continue to receive care at the facility."

Extra Ignored

So does this mean the Frederick County taxpayer won't be paying any more of Aurora's bad debt expense to the tune of $1.4 million?

If the company who managed the center prior to Aurora was negligent in submitting bills in a timely manner so they could be paid, the county should be suing them for the bad debt expense. But what's the point when you can just use taxpayer money and throw the poor in the street.

I see $700,000 of the funds to pay the bad debt expense was taken from the Workmen's Comp fund. Pretty soon you won't have to worry about paying benefits to county employees; they will all be independent contractors like taxi cab drivers.

http://www.frederickcountymd.gov/documents/264/8055/8068/2.6%20Request%20for%20BT%20to%20CCRC_201402041452518392.pdf

fourdays21793

Well, so it has happened after all. It's a sad day for the county. I hope the people will remember this (and the Monrovia Towne Center incident) in casting their vote this fall for County Executive. As a conservative, I'm all for supporting our elected officials to spend OUR money wisely, but this, and the lack of transparency behind the scenes, makes me leery about supporting a man of his calibar (Blaine Young) in an election. For the first time since I can remember, I am SERIOUSLY considering his democratic opponent this fall.

MCEDDE21

From the government's press release: "The Frederick Board of County Commissioners today announced that it has entered into an asset purchase agreement with Aurora Holdings VII, LLC, whereby the purchaser will initially lease the building and grounds and take over operations, revenue and expenses..."

No. This is not an asset purchase agreement; it's a lease agreement. There was no public hearing on leasing the land or the facilities. Blaine held his public charade last year on a purchase agreement.

BTW: What, exactly, are the terms of this lease?
http://frederickcountymd.gov/DocumentCenter/View/269106

MCEDDE21

Does this mean we'll be losing money on the lease deal, too?

KellyAlzan

As I stated many months ago, and as I stated yesterday, Ba'Lane will lease the property to Aurora for $1.00 per year.

When I initially stated this many weeks ago, I was NOT joking, I was dead serious.

It's not a secret that Ba'Lane is receiving a healthy kick back for the deal, which Kirbie, Billie, and Paul will each receive a percentage of.

Since the land sale deal is falling to pieces, Ba'Lane is determined to get the kick back he has been counting on. And to do so, he must give Aurora a sweetheart deal on the lease. The less money that Aurora has to pay for the lease - the more they have to give to Ba'Lane.

Money is the root of all evil. Ba'Lane got so focused on getting his kick back that he got ahead of himself and did not take enough steps to avoid raising suspicions. He is not even trying to conceal this corrupt deal. He's like "well everyone knows I'm getting a kickback, watch me get away with it, so why hide it".

I assure you people this:

Ba'Lane will not get the votes to win in the upcoming election.
Billie will not get the votes to win in the upcoming election.
Kirbie will not be voted into office in the upcoming election.
Paul will not get voted for in the upcoming election.

Chuck Jenkins will be re-elected.

So 4 out of 5 is good, I can live with that.

Rosmadder13

Another joke...how much money are the tax payers going to save again? And what happens to our future seniors who cannot afford to go anywhere else? I know who won't be getting my votes in upcoming elections, just saying.

guido207

How does pumping $10,700,000 to Aurora get "..our financial house in order?"

How does selling the nursing homes when they were just months away from breaking even get "...our financial house in order?"

How does selling these assets to Aurora, a hand picked buyer and campaign contributor, for $25,000,000 less than they are worth, get "..our financial house in order?"

Was there a public hearing on the complete restructuring of this secret, back room deal?

armillary

Aurora will now aggressively pursue collecting the accounts receivable that Blaine had told them to not to pursue. Why? Because incoming revenue would have weakened Blaine's case for selling. With a budget shortfall, the county could have used that revenue. Now Aurora gets to keep it as another profit, courtesy of Blaine.

jeff44

"As we have stated in the past, we know this has been a very emotional mater, but when a majority of this board was elected, we promised to address the difficult issues and make decisive steps to get our financial house in order," Young said in the news release."

Getting the county's financial house in order includes putting the county into a $13M hole, then robbing the piggy bank to balance the budget?

matthewboh

Vote Republican!

newtofc

This County did in 2010 and look at the mess it made.

skjer531

look what the tea haddists have done to the whole country

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