Deal in place to save Burlingame Long-Term Care

Rather than close its long-term nursing home in Burlingame as a cost-savings measure and transferring residents elsewhere, the county is looking at keeping the doors open another three years while a health care company manages the facility on its license.

If all goes as planned, 163 residents still at the facility can stay, those who’ve already left have an option of returning, all will eventually be housed in a renovated building and at least two-thirds of the employees will keep their jobs. The agreement will cost approximately $1 million to $3 million less than closing the care home.

"This couldn’t have happened any sooner,” said Nadia Bledsoe, an agent with American Federation of State, County and Municipal Employees 829, which represents a majority of the staff. "Not only is it going to increase the number of skilled nursing beds, it saves jobs for people who would have been unemployed.”

The plan is contingent on Vincent and Mario Muzzi, owners of the Trousdale Drive building that houses Burlingame Long-Term Care, completing sale of it to Brius, LLC. San Mateo County would then extend its lease until Sept. 30, 2015 and allow Brius to manage BLTC on behalf of the San Mateo Medical Center for three and a half years while the company transitions to being a freestanding nursing facility on Oct. 1, 2015.

In return, Brius will keep whatever profit or loss it makes on operations. Brius will receive a higher Medi-Cal reimbursement rate affiliated with the medical center than on its own — one reason the San Mateo County Health System said other operators were not willing to take over the facility and its patients as a freestanding operation.

The county will also provide food services for 30 days after the 2015 transfer date to Brius at an estimated cost of $75,000 and leave all the equipment, furnishing and supplies at no charge.

Health System Director Jean Fraser was not available to comment on the proposal but Supervisor Dave Pine called it "a home run for the county.”

Supervisor Carole Groom is taking a wait-and-see approach but said she is glad to see it moving closer and closer to a new operator.

Pine, Groom and the rest of the Board of Supervisors will vote Tuesday on the plan which is currently part of the consent agenda but could be pulled off for discussion.

Finding a way to keep BLTC intact while saving money is "a very creative solution to a difficult problem,” Pine said.

San Mateo County took over the 281-bed nursing facility in 2003 at the request of the California Department of Health Services. The state had put the facility into receivership because the operator faced bankruptcy and the county stepped in rather than risk patients being shipped as far away as Oregon. The home, which houses many Medi-Cal patients, never turned into a moneymaker for the county and, in July 2011, the civil grand jury recommended the county cut ties.

In February, the board unanimously voted not to renew its lease with the Muzzis as a way to save $9 million annually. In a packed and emotional hearing, residents and workers pleaded for any other alternative but county officials said there was no other alternative to closing the 281-bed facility.

The closure plan called for reopening Unit 1B of the San Mateo Medical Center with an extra 32 beds for short-term patients but that will not happen if the Brius agreement takes effect. There is also no need to renovate the ground floor for more beds nor transfer 27 employees there from Burlingame Long-Term Care.

Brius has committed to employing a minimum of two thirds of the employees on its payroll and invest a minimum of $3.5 million in building renovations. A December 2011 report commissioned on the building concluded it was not physically adequate but many at the February hearing, including Mario Muzzi, challenged the findings.

Muzzi is still negotiating with Brius for the building but, until Friday, had no idea about the county’s management strategy. He said he still believes the facility is sound but that any building could benefit from freshening up.

In the meantime, Brius will house on the first floor residents who cannot walk to improve evacuation ability in the case of a fire or major earthquake.

The county will pay Brius the $1.9 million rent it would have paid Muzzi under the existing lease to help with the renovations but after two years the company will refund $750,000 plus 3 percent simple interest.

For the clients and employees, Muzzi said he hopes the deal works out — and quickly.

"It’s no secret that the sooner this gets done the better it will be for both the staff and residents,” Muzzi said.

The county has been moving clients as space became available elsewhere but 163 of the approximately 200 people remain. Pine said those already gone will have the option to return.

Bledsoe said the workers have a large sense of relief now and that some who were otherwise eligible to bump other county employees based on seniority will opt to stay with Brius out of loyalty to the residents.

In her report to the board, Fraser concedes the agreement is risky because Brius could jeopardize the county’s nursing an hospital licenses if it does not maintain quality. However, she added all of Brius’ 45 other facilities are in good standing with state and federal governments, even listed as a firm that can take over and revamp problem nursing homes.

Overall, the benefits outweigh the risks because the building will get a sorely needed renovation, more than 230 beds will remain available in the county and 150 workers in jeopardy of pink slips will be offered employment, according to Fraser.

The Board of Supervisors meets 9 a.m. Tuesday, June 19 in Board Chambers, 400 County Government Center, Redwood City.

Michelle Durand can be reached by email: michelle@smdailyjournal.com or by phone: (650) 344-5200 ext. 102.