POTTSVILLE, Pa. - The Board of Commissioners of Schuylkill County Tuesday voted to help Rest Haven Nursing Home navigate a current cash flow squeeze.
Commissioners were presented with, and asked to consider a budget resolution for Rest Haven, following a recommendation form Service Access Management (SAM), in its capacity as the managing firm for Rest Haven.
The resolution includes a loan for $750,000 to be repaid in five equal installments this year and an allocation for $99,825.
The total financial package for $849,825 will be funded by the county's general fund.
The county's finance director explained that the cash flow squeeze was the consequence of one short-term challenge and one long-term challenge.
The short-term challenge includes a buildup in accounts receivable that are over 120 days as well as a buildup in accounts payable of approximately $1 million.
The long term challenge involves third party reimbursement from Medicaid which is not increasing in proportion to total expenses for Rest Haven.
This has created operating losses and it is also contributing to an increase in negative net position for the nursing home on an accrual base of accounting, the director said.
The cash squeeze not withstanding, patient care at the facility is still outstanding and all 412 beds at Rest Haven are currently occupied, according to reports.
Allentown, PA 18102