Frequently Asked Questions about the process to explore the sale of PANRC
Feb. 2, 2018
What is the expected timeline for the process?
Typically, it takes six to nine months to complete the sale of a skilled nursing center from the date the
county issues a request for proposal.
How long will it take from the date a buyer is identified?
It will take approximately three months to determine if the county has identified a buyer that meets the
outlined criteria. From the date of identifying a qualified buyer and determining to move forward with
the sale, it will take another three months for the buyer to complete its due diligence, apply for the
transfer of the license and complete its financing.
How will the sale of PANRC affect those who are eligible to retire?
The sale of PANRC will not adversely affect any employee who is planning to retire. Any such employee
will be eligible to begin their retirement. Any paid time off (PTO) benefits will be paid, post‐closing, and
the pension benefit will be unchanged.
Will Complete HealthCare Resources (CHR) remain?
The county is negotiating with CHR to determine their role and value. The buyer, should the county
reach that decision, will not retain CHR. Any money due to CHR pursuant to the county’s agreement
with CHR will be the responsibility of the county.
Do the taxpayers know this decision?
On Monday, Jan. 29, the Board of Commissioners released a press statement announcing the decision to
explore the possibility of sale. On Wednesday, Jan. 31, the commissioners, in a public meeting,
announced the same decision. The local television stations covered the public meeting and both the
newspaper reports and video coverage can be reviewed online.
Why does the county continue to fund the prison?
York County, by law, is required to provide a judicial system, including a county jail. The comparison of
the cost to operate the county prison and the nursing home have been confused. The county’s
aggregate budget for the jail is approximately $61.3 million. The county receives approximately $26.4
million from the state and federal government as reimbursement for state department of corrections
inmates as well as detainees of the federal Immigration and Customs Enforcement, or
ICE. Approximately $800k in charges to prisoners also helps to offset the cost. The net cost of operating
the prison is approximately $34.1 million.
The total cost to operate PANRC is about $53.5 million to provide skilled nursing care for roughly 375
residents and approximately 32 independent living residents. The taxpayers’ contributions to PANRC in
2017 was approximately $8.1 million and it is expected to be at least $11.2 million in 2018. The county
has provided approximately $75 million of subsidy for PANRC over the last 10 years.
York County does not have a legal obligation to own or operate a skilled nursing center.
Does the county believe there will be interested buyers?
In recent years, several counties in Pennsylvania have sold their skilled nursing centers and, in each case,
there were multiple interested buyers. Given the size and location of PANRC, we expect to receive
significant interest. Until we solicit proposals and receive written proposals, we don’t know for certain if
there are any interested buyers and won’t speculate as to who might be interested in acquiring PANRC.
What happens if the county does not identify a qualified buyer?
The county will have to evaluate the operating needs and budget shortfall and increase real estate taxes
to all county taxpayers to support PANRC.
What will happen to employee benefits?
Every employee will be paid any due and unpaid paid time off (PTO).
Employees who are vested in the county pension plan will have the option to take a one‐time
distribution or keep their pension benefits in the plan until they retire. Employees who are not fully
vested with five years of county employment will receive a one‐time payment for their contributions to
date.
The new owner/employer will offer healthcare benefits, effective the day they assume ownership and
the new owner will offer a defined contribution retirement plan. All benefit plans and packages will be
introduced and reviewed with the new owner before the sale.
How long after the sale will employees be able to retain their current county benefits?
County PTO due and payable will be distributed in the first payroll following the sale date. County
healthcare will cease on the last day of county ownership and the new benefits will begin on the first
day of ownership for the new owner.
County pension benefits will cease to accrue on the last day of county ownership.
Will there be a waiting period for new healthcare benefits?
No. Employees will be fully covered throughout the process, either by the county or the new owner.
When will retirement statements be distributed?
According to the York County Controller’s office, pension statements will be available in May or June.
What happens to the union?
The new owner will have to recognize the collective bargaining unit and negotiate in good faith to agree
to a collective bargaining agreement.
Has the county reviewed the deed to determine if there is a sale restriction imposed by the
original land donor?
The county is not aware of any deed restrictions.
When will the families of PANRC residents be advised?
Residents received a letter with the details of this process on Monday, Jan. 31, 2018. In addition, any
resident of York County has very likely heard the news via one of the media outlets. The county, along
with the administrator of PANRC, is meeting with the resident representatives on Thursday, Feb. 1.