In 1995 Roanoke City faced the same dilemma that hundreds of municipalities around the country now struggle with; whether to continue using city dollars to keep the doors of the city-owned nursing home open, or to sell the facility.
Naturally, city officials wanted to make a decision that would please the residents of the facility, the employees, and the citizens of Roanoke. Concerned residents voiced their opinion. A local editorial stated "... we can make our criminals more comfortable, our city look better, and make ourselves more comfortable; but, we can't take care of those who took care of us first - our parents. I hope the city will not sell this nursing home to a private company. That company may not care what happens to our parents, but only care where the next profit dollar is coming from. Please leave the nursing home the way it is. Why change something that's working so well?"
The problem was that things were not "working so well". The City was losing $580,000 per year to cover operating shortfalls. And the quality of care was sub par due to the condition of the physical plant. The facility did not meet the current standards for nursing facilities, which required larger rooms, toilets and sinks in each room, and wider hallways. What's more, the cost for maintaining the facility was going up every year.
In a situation such as this, other municipalities have decided to sell the nursing home "as is" after believing hollow promises from private operating companies who claim they can turn things around. All too often the new operating company files for bankruptcy and the facility is closed, leaving the residents with no where to go.
Roanoke City opted to partner with Smith/Packett and replace the facility with a state of the art building. Smith/Packett bore all the risk in developing the replacement facility and upon completion, transferred all the residents and employees to the new facility. The replacement nursing home is now the centerpiece of the most successful retirement community in the city of Roanoke, Pheasant Ridge, a $30 million continuing care retirement community developed and owned by Smith/Packett.
The partnership created a "win-win" scenario; a state-of-the-art facility to care for future Roanoke residents, a better quality of life for the existing residents, continued employment and better work environment for staff, and the elimination of a growing liability for city taxpayers.
The residents remained in the original facility until the Pheasant Ridge was constructed, and were all transferred to the new facility in one day.
The employees were satisfied because they kept their jobs; the taxpayers were satisfied because they were no longer paying $580,000 annually to keep an aging nursing home open; and, the community was satisfied because quality long term care remained in their community.
