Present:  Directors  Heinisch, Kirby, Richter, Dubin, Tobias

Absent/Excused: Director Daugherty

Also Present: Director Candidate Kloster, C. Anderson, P. Anderson, Scavotto, Bockman

The meeting was called to order by Crain at 7:00 am. A quorum was present.

1. Minutes: The minutes of the previous meeting were approved as submitted. Motion Heinisch, second Richter, unanimous.

2. Old Business:  None

3. New Business:
   
   a. Management Report –  Operations
   
   Scavotto reviewed the November financials as well as the November year-end performance. Despite cuts in government reimbursement, DCRNC should report an operating margin of approximately 3 percent for FYE 11/30/02. The books are still open in preparation for the year-end audit.
   
   December’s occupancy was among the worst we have experienced in recent years.  ADC was 173 versus 178 for December 2001. IPA and Medicare days were up slightly from December 2001, but were paid at significantly lower rates. Private pay days were down 306 from December 2001, yielding a revenue drop of $41k. Census has been slow to recover thru mid-January, but it is on an upward climb. As a result of the low occupancy, DCRNC will feel the full impact of last year’s rate cuts. The preliminary run of the financial statement indicates a loss of $54k. Like the occupancy, this is the worst monthly financial performance in recent years.
   
   December revenues were clearly well off the mark. Some expenses were up and are being investigated: food, utilities, health insurance.  Salaries for nurse aides were up, but this was due more to hours paid than worked. Hours worked are within normal limits.
   
   Scavotto reviewed other challenges DCRNC will face in 2003. These include Medicare Part B Therapy Caps ($1500) and reduced Township support.
   
   Scavotto and C Anderson reported on the planning for the Alzheimer’s project and distributed the latest architectural sketch and cost estimates. After discussion, there was unanimous sentiment to pursue the Alzheimer’s initiative. (Funds have been budgeted and the projected is within budget.)
   
   Scavotto summarized the Market Study & Demand Analysis for the senior housing market. Essentially, there is demand for a small assisted living project (40-43 units), but the small size makes economic feasibility doubtful. Competitive programs at Oakcrest and Grand Victorian were discussed. For independent living, the study reports the same findings – demand for a small project in the under-$25,000 market segment , but questionable economic feasibility. Also, senior housing appears to be a pure housing/real estate play with rent subsidies, and is not reflective of the County’s mission of DCRNC’s core competence of providing nursing care. Supportive living is a program that may offer some possibilities. Scavotto reviewed the basics of supportive living including the current moratorium imposed by the State. If the moratorium is lifted, there is demand for 50 units and such a project is a much better fit with DCRNC’s skills. The study will be mailed to each director when completed next week.

4. Next meeting: March 26, 2006

 
Respectfully submitted,

_________________
Catherine Anderson
Recording Secretary