Geer closes outpatient PT, to sell rental housing

NORTH CANAAN — The Geer Village Senior Community, like other nursing facilities in Connecticut, has been battered by COVID-19, posing unprecedented financial hardship.

Three years into the still-active pandemic, the road to stability for Geer requires a restructuring, according to administrator Kevin O’Connell, who announced on Tuesday, Aug. 16, the closing of its outpatient physical therapy effective on Friday, Aug. 19, and a new partnership with an outside vendor to replace its in-house pharmacy services.

In addition, Geer is looking to sell several rental properties totaling 20 units along Route 7 near the entrance to its campus. The housing was originally intended for employees, but the units are now primarily occupied with tenants from the community, according to O’Connell.

“The problem is, we are still in the middle of a pandemic, or endemic, and are dealing with all the financial challenges that go with it,” said the Geer CEO. “Any responsible organization would do the same and we feel that a restructure better allows us to refocus on the nursing home and the lodge.”

Referring to the planned sale of the rental properties, “Our core business is not being a landlord, so it makes sense in a decent real estate market to sell the property,” he noted.

A decline in resident occupancy, rising inflation and energy costs, an increasingly complex regulatory environment and inadequate reimbursement from insurance plans, particularly Medicare and Medicaid, have all taken a toll on the North Canaan facility, which traditionally operated on narrow margins.

O’Connell said positive signs are on the horizon. Occupancy at the nursing facility, he said, is “climbing back up to 87,” from pre-pandemic occupancy of around 100. Residency at the Lodge, too, he said, is slowly returning to its prior 110 count.

Geer was also hit with procedures and expenses on a scale that did not exist pre-pandemic, such as procuring critical PPE supplies, ongoing testing of residents and staff, isolating infected residents and caring for those who contracted the virus.

“Like any other business that experiences a loss in income, we must adjust what we spend. That means we must focus on our core mission, increase efficiencies and improve cash flow,” said O’Connell.

A ‘restructuring’ of physical therapy

The outpatient physical therapy department has been part of the continuum of care that Geer has provided since the early 1990s. The program was provided by two full-time therapists and one part-time therapist who together handled between eight and 14 appointments daily, said O’Connell.

Access by the public to the service was discontinued and all current active patients received notice of the decision. Residents of Geer, however, will continue to have access to physical therapy.

“We are not closing physical therapy, just restructuring it so we can focus on the people who live on campus. If we close it to community access, we don’t have to hire expensive therapists. We need to realize the cash savings.”

O’Connell said staff will work with community patients to help them transition to new providers over the coming days and weeks and do everything they can to minimize the impact on those affected.

Outsourcing the pharmacy

Geer also announced that it plans to enter into a partnership with Hancock Pharmacy to run the on-campus pharmacy, a decision he said will benefit residents and the community. The transition for filling prescriptions will be gradual, and periodic notices will be sent out to those utilizing the service, according to Geer officials.

“We are only one or two of [Connecticut] nursing homes that still have our own pharmacy. Every other nursing home outsources,” explained O’Connell. “I have to spend $70,000 a month just to buy medication.”

The new partnership with Hancock, he said, is a win-win situation for all involved. Future benefits could include longer hours of operation, including weekends; expanded service into the local retail market, even in Massachusetts and New York; home delivery service and sales of medical equipment such as walkers and wheelchairs.

He did not dismiss the possibility of layoffs due to the restructuring, noting that there could be up to half a dozen, although officials are hoping to “rework people into the company.”

A Geer rental property along Route 7 in North Canaan near its campus entrance. Photo by John Coston

A Geer rental property along Route 7 in North Canaan near its campus entrance. Photo by John Coston