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As the search for a new owner of Mason Health Care progresses, members of the Mason and Kosciusko 21st Century Foundation boards of directors are attempting to ease concerns and gain support for the sale.
To that end, the Mason board hosted an informational meeting for the residents and their family members Monday night.
Moderated by Julie Bower, vice president of the K21 board and director of Home Health Care Services for the foundation, the hour-long meeting addressed questions ranging from how the quality of care would be affected by the sale to what criteria are being used to determine who the final purchaser will be.
Mason board president Bob Gephart said in response to a question on real estate taxes that once the facility is sold to a for-profit health care company, the facility would be returned to the property tax rolls.
"When the hospital acquired Mason, no, they didn't have to pay (property) taxes," he said. "If it's sold to a for-profit company, it would have to pay property taxes on the facility."
Asked why the K21 Foundation, which took control of Mason after Kosciusko Community Hospital was sold to Quorum Health in January, wants to sell Mason, Willis Alt, a K21 board member and investment consult for the board, said the foundation wasn't in the position to manage the facility as a stand-alone entity.
"The foundation isn't in the business of owning a business," he said.
Concerns were expressed about cost increases once the sale to a private, for-profit company was complete. Both Bower and Alt said both the K21 and Mason boards shared those concerns, but once the sale was completed, neither would have control over cost increases. Rates charged to patients using Medicare or private insurance are set by regulation or contract, and likely wouldn't be affected.
"We wouldn't have control over rates charged to non-Medicare or insurance patients," Bower said.
Additionally, the distinction between a profit and nonprofit company is often confusing when talking about the health care industry.
"The only difference between a profit and nonprofit facility is a question of taxes," Alt said. "Nonprofits make a 'profit' that is used for facility maintenance and upkeep."
Several family members expressed their concern about Miller Health Care Systems being considered as one of the potential purchasers of Mason, even to the point of removing their family members should Miller acquire Mason. Miller manages Miller's Merry Manor in Warsaw and 30 other facilities in 28 communities in northern Indiana. The other two finalists are Kingston Health Care and TLC Health Care Systems, which also operate residential facilities in northern Indiana.
"If Miller's buys this place, my mother is out of here faster than you can say 'boo,'" said Darleen Hunter.
Bower said concern about Miller Health Care Systems is being considered by the board in the decision-making process on who the final purchaser will be.
"We hear and understand your concern," she said.
Warren Walmer, whose mother-in-law is a resident of Mason, asked how the sale of Mason is consistent with the K21 Foundation's stated purpose of promoting health in the county.
"How does the notion of promoting the health of the county square with finding a for-profit company to buy this facility?" he asked.
"As a board for Mason's, we're going to be looking out for the best interests of the patients, so that (promoting health) will be addressed," Gephart said.
According to Bower, the Mason board and a two-person staff advisory committee will be touring facilities of the three finalists over the next few weeks, and will communicate their findings to the families and staff.
