Future of Pioneer Home, WRC in question

CHEYENNE – State File 112, sponsored by the Wyoming Joint Appropriations Committee and moving forward through the Legislature, would effectively put two elderly care facilities, the Wyoming Pioneer Home in Thermopolis, and the Wyoming Retirement Center in Basin, currently managed by the State Department of Health, on the auction block, for privatization, with proceeds going to state general fund.

In December, Governor Matt Mead was quoted by Wyoming Public Media, indicating that he would be against such a move without further study, however, the bill was successfully introduced and referred to the Senate Appropriations Committee on Feb. 16, with a vote of 28 in favor, with one against. Senator Ray Peterson (SD19, R-Cowley) voted against; Senator Wyatt Agar (SD20, R-Thermopolis) excused himself from the vote.

On Sunday, the Thermopolis Hot Springs Chamber of Commerce sent out an email, urging voters to review the bill, and stating that its passage and subsequent downsizing or privatizing of the facilities would be “devastating to our communities.”

Earlier this year, the Pioneer Home sent a letter to family of residents, warning of the impending legislation, but taking no stated stance on the matter.

On Monday, the Basin Area Chamber of Commerce issued a plea on its Facebook page asking people to contact legislators about the bill. There is also a “Save the Wyoming Retirement Center” Facebook page.

“I’ve been getting tons of emails on this, and all I can say is I’m working on it,” said Representative Mike Greear (Dist. 27, R-Worland). “[Representative Nathan] Winters (R-Thermopolis, HD28) and I have been blocking this for two or three years, and rather than introduce it in the House, where we could block it again, they introduced it in the Senate. I testified before the Joint Appropriations Committee to try and get it killed, but I didn’t manage to.”

According to the bill, “The property comprising the institution and any lands acquired by the state for the benefit of the institution shall be subject to disposition, lease or continued use by the state as provided by law. The proceeds from any sale or lease conducted under this paragraph shall be credited to the general fund unless specifically directed otherwise by state or federal law or a conveyance instrument.”

The bill also defines the properties as, “The Wyoming retirement center was established in Basin in 1924 as the Wyoming Tuberculosis Sanitarium. It served in that capacity until approximately 1969, when it was repurposed as a state run nursing home. Today, the facility continues to operate as a nursing home, serving predominantly persons from the Big Horn Basin and a number of individuals with mental illness. Pursuant to the 2015 revisions to Wyoming law … the Wyoming life resource center in Lander is the safety net facility responsible for providing services to persons with qualifying mental illness, not the Wyoming retirement center.

“Constructed in Thermopolis in the early 1950s, the Wyoming pioneer home was first conceived in 1946 as the Wyoming Home for the Aged, with the purpose of providing ‘care and maintenance of such residents of this State who are without means of support or who must have personal care and attention’ (1946 Wyoming Session Laws, Special Session, 14 Chapter 22). Today rather than serving a statewide population or caring for those who are without other means of support, the Wyoming pioneer home serves largely as a subsidized assisted living facility generally for residents from Thermopolis and the neighboring counties.”

The state’s fiscal evaluation indicates that the Wyoming Retirement Center currently operates on a break-even basis, with the exception of major maintenance. Approximately $284,052 in general funds is budgeted to the facility on a biennial basis. This budget could be eliminated if the facility were privatized.

Since the vast majority of the general funds was removed from Unit 5060 last biennium, the facility runs on self-generated revenue (Medicaid / Medicare / VA / private pay). Fund 419 is the account that serves as the buffer between expenditures and revenues, which don’t line up month to month. If the facility were privatized, this fund could be liquidated, and approximately $7 million could be reverted (once) to the general fund. The balance of Fund 419 as of Feb. 9 is $7,688,818.

The Wyoming Pioneer Home operates with an annual state general fund subsidy of approximately $1,300,000 (around 60 percent of total expenditures).

If the operation of the facility were privatized, this general fund expenditure would decrease, and the operator would likely make up these funds by raising private-pay rates or increasing resident enrollment in Medicaid.

“Neither one of these facilities provides a safety net under Medicaid,” explained Greear. “So we would like to push back on this so there’s time to add some amendments and get some assurances. Unfortunately, it looks like the governor and the Department of Health want to see a plan by the communities to go private with these facilities.”

Because the facility is part of Hot Springs State Park, major maintenance would likely continue to be the responsibility of the state, with only operation being privatized. If major maintenance was not continued this would result in around $151,092 in general fund savings based upon previous year appropriations.

On Monday, the Appropriations Committee voted to forward the bill to the general file for a senate vote, with a vote of 4 to 1. The lone opposition vote came from Sen. John M. Hastert (SD13, D-Green River).

The following amendment was added before approval, “may be transferred no later than four (4) years after the [Health] department’s finding to another health care provider in the area…”

“I’m pretty sure,” warned Greear, “that within two or three years we are going to lose this fight.”