DeKalb County $8.3M nursing center sale off; funding questions remain?

SYCAMORE – An $8.3 million sale of the DeKalb County Rehabilitation and Nursing Center to a private buyer has officially been terminated, and there are no immediate plans to search for a new buyer, county officials said this week.

Now, officials must grapple with how to fund the struggling facility, 2600 N. Annie Glidden Road, DeKalb, for another year under county government ownership.

Last month, the buyers – principals from Illuminate HC and Saba Healthcare – informed DeKalb County they intended to terminate the purchase agreement. The buyers themselves did not attend an Oct. 3 Illinois Health Facilities and Services Review Board meeting that could have green-lit the acquisition.

On Wednesday, DeKalb County Administrator Brian Gregory announced the deal was off.

“The buyers’ cure period under the contract expired end of the day Monday, and the buyers’ counsel indicated the buyers were not going to cure, as such the contracts were terminated,” Gregory said, referring to the window of time for contract proceedings.

In July 2022 the DeKalb County Board voted to initiate the sale of the facility to Evanston-based Illuminate H.C. for $8.3 million. However, public scrutiny of the sale increased in April 2023, when county officials learned members of the leadership team from the only other company to bid on the facility – Skokie-based Saba Healthcare – had joined forces. Principals from the two companies created DeKalb Healthcare Holdings LLC, records filed online with the Illinois Secretary of State’s office show.

In July 2023, members of the public argued against the sale at a state public hearing in DeKalb and numerous county residents drove to Bolingbrook – twice – seeking to stop the sale.

Madeline Nelson, one of the dozens of DeKalb County residents who have decried the sale since last year, said she thinks their lobbying efforts have paid off.

“As the weeks have passed our group has seen definite progress and a change of heart from the board toward saving the nursing home. As we look into the coming year we look forward to continued progress,” Nelson said. “It is our hope that the progress will also include an apolitical stance, more transparency, more discussions, data-based problem solving, careful consideration of outside suggestions and positive interactions with the Board.”

Steve Duchrow of DeKalb, also a frequent opponent of a sale, said he’s also pleased with the turn of events.

“I’d like to thank the board members for working to keep the nursing home, and for those of you who are still keeping an open mind about this matter, and trying to help the nursing home stay here,” Duchrow said.

“The board and the staff deserve our thanks and appreciation for this current stance, and we look forward to both the process – complex though it may be – and a strong, stable, happy nursing home and its staff at the end of the road.”

—  Madeline Nelson

Funding challenges

According to county documents, the county has shuffled $9.2 million from other funds into the nursing center to date. County staff said they expect that number to grow to $9.8 million by the end of the year.

Now the county must include funding plans for the nursing center in the Fiscal 2024 budget, not yet finalized. A DeKalb County Board final vote on next year’s budget isn’t expected until December.

Gregory said each month in 2023 so far, on average, the nursing center has required about $200,000 in cash flow assistance. He projects the county will need to budget between $2 million and $2.6 million for the facility in 2024.

A plan to increase the profitably of the center from Jordan Healthcare – a company DeKalb County contracted to help right struggling finances – is underway. Some DeKalb County Board members said they’re optimistic about its ability to turn the center around.

Board member Scott Campbell, a Democrat from District 7, said he thinks the county should budget based on historical financial figures, not assumptions made in the Jordan Healthcare plan that is yet to be published. Campbell said he believes the county should not expect the facility to pay for itself by the end of 2024.

“Because that’s a little bit on the magical thinking side,” Campbell said. “So I think it’s appropriate, and I think it’s in the best interest of the taxpayers to say, ‘OK, we’ve got this really big new expense. We should defer other new expenses until we figure out how to pay for it, and we should not start throwing money back into the tax levy until we know we can afford to do so.’ ”

According to county documents, the average value of existing taxable property will increase by about 6.5% from 2023 to fiscal 2024. Considering that estimate, a 7.5% decrease in the property tax rate for DeKalb County has been proposed, documents show.

Under that plan, the average DeKalb County resident could see their property taxes remain relatively flat, Gregory said. Some county property owners’ home values went up more than others, however, so not everyone is guaranteed a smaller tax bill. Gregory has also said decreasing the tax rate by 6.5% instead could help shore up funds to pay for the nursing center.

Property tax levy rates for 2024 haven’t been determined either, however, plans are expected to be finalized by December, too.

Bagby said he believes keeping the lights on at the facility is a priority.

“We happen to disagree on what the stack of coins will look like, but I think we’re all in agreement that we’re here to make sure we keep the nursing home open, we’re here to make sure we keep the quality of care what it has consistently been over the past years, we’re just trying to figure out how we cover that $2.6 million,” said District 3 Board Member Tim Bagby, also head of the county’s Republican Party.

Debate over how to fund the facility went on for nearly an hour Wednesday. Board members voted to send the facility’s budget talks to the county’s Finance and Administration Committee. The next committee meeting is set for 6:30 p.m. Nov. 1 in the DeKalb County Legislative Center, 200 N. Main St. in Sycamore.

Nelson said she’s grateful the County Board is back to discussing how to fund the facility through public ownership.

“The board and the staff deserve our thanks and appreciation for this current stance, and we look forward to both the process – complex though it may be – and a strong, stable, happy nursing home and its staff at the end of the road,” Nelson said.