Four providers may vie for Ottawa nursing home beds

January 28, 2011
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With new state allocations for nursing home and hospital long-term care unit beds pending in the legislature, Ottawa County joins Oakland and Livingston counties in the spotlight for potential long-term care investment in Michigan.

Five letters of intent, two from one provider, have been submitted to the Michigan Department of Community Health and local planning agency Alliance for Health for the 70 beds available in Ottawa County.

The rush follows a 21 percent boost in the bed allocation for the lakeshore county that occurred in 2008.

Those beds were awarded to: North Ottawa Care Center South, part of the North Ottawa Community Health System, for a new 125-bed nursing home near Grand Haven; 16 beds to Sunset Manor Inc.’s Waterford Center in Hudsonville; and 25 beds to Park Place Inn, new construction in Hudsonville proposed by an Illinois nonprofit. Sunset Manor won its bed count on a provision in CON standards that allowed 16 beds even though only one was available.

None of those projects has started construction.

If all four entities meet the Feb. 1 deadline for applications, the new proposals will be stacked up against each other and awarded points for various aspects, such as Medicaid beds, air conditioning and cultural model.

According to the letters of intent, the proposals include:

North Ottawa Care Center South. The North Ottawa Community Health System affiliate would add 25 beds to the 125-bed nursing home proposed for a total of 150 beds at the 48.5-acre site at the northeast corner of Lake Michigan Drive and U.S. 31 in Grand Haven Township, said NOCHS Chief Communications Officer Jen VanSkiver. She said the system filed a second letter of intent to add 45 beds to its current nursing home, Heartwood Lodge, in Spring Lake. NOCHS is a nonprofit.

Spectrum Health Rehabilitation and Nursing Center, Zeeland Community Hospital. Spectrum Health, of Grand Rapids, is proposing a 70-bed hospital long-term care unit attached to the hospital, which it recently acquired. The project would cost $13.4 million. “We like what it provides in terms of care continuity, when you have the ability to integrate data streams and clinical information,” said Jeffery S. Lemon, president of Spectrum Health Continuing Care. “From our perspective, it facilitates better care.” Spectrum Health is a nonprofit organization.

Trilogy Health Services LLC of Louisville, Ky., is proposing Ottawa Health Campus at the northwest corner of 32nd Avenue and Highland Drive in Hudsonville. The $12.1 million, 33,459-square-foot, single story building would have 60 beds. Trilogy has 64 sites, about 6,000 beds, in Illinois, Indiana, Kentucky, Michigan and Ohio, including adult day services, assisted living and skilled nursing, said Leo Whitt, business development manager. The private, for-profit company has two facilities in Battle Creek and one each in Commerce Township and Jackson.

Ciena Healthcare Management of Southfield is proposing the Grand Haven Care Center at 168th Avenue and Comstock Street. With 37,000 square feet, the building would be owned by Grand Haven Senior Leasing LLC, a Ciena-related entity, and leased by Grand Haven Care Center for $5.2 million over 15 years. The one-floor, 70-bed nursing home would include space for nursing, dietary, laundry and housekeeping, therapy services, activities, social services, maintenance, office and administration. According to its website, Ciena has 32 Michigan facilities, including one in St. Joseph, and three in Connecticut. In 2007, the company agreed to a $1.25 million settlement of Medicare and Medicaid fraud charges levied by the state Attorney General and the U.S. District Attorney for the Eastern District of Michigan. The company also agreed to institute a corporate integrity agreement. Ciena representatives did not return calls for comment.

Oakland County would have 320 beds available, and has seen eight letters of intent. Two new letters of intent have been filed this month for 174 available beds in Livingston County, where two nursing home proposals from last year are in the appeals process.

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