Peoria County seeks approval to sell former Heddington Oaks nursing home

Oct. 30--Voters throughout Peoria County will have a say on whether to sell the now-vacant Heddington Oaks nursing home.

Earlier this year, County Board members unanimously voted to close the county-owned site and transfer residents to other skilled-care facilities throughout the area. The last resident moved out this summer.

In closing the West Peoria nursing home that opened in 2013, board leaders cited its persistent deficit, which ranged from $1.5 million to $3 million a year -- funds ultimately covered by taxpayers.

They'd been unable to improve the balance sheet despite efforts to enhance marketing and other recruitment efforts to bring in residents, and seeking input on other changes from health officials at the area's hospitals also couldn't close the gap, County Board Chairman Andrew Rand said.

"We didn't get to the mass of revenue or the payer mix that was sustainable," he said, pointing to a dearth of private-pay patients and those relying upon Medicare, needed to balance the lower reimbursement rates received for patients funded by Medicaid.

What's at issue on the ballot, though, is the ability to sell the building and grounds, and voter assent is required by law because voters authorized the funds used to construct the site. A buyer has not yet been identified, and voter permission to sell is considered important for its marketing.

A "no" vote won't reopen Heddington Oaks, Rand said, pointing to the continued deficits there.

"If we can't dispose of the facility, then we're going to have a constant cash need" for upkeep on the building, which isn't bringing in any revenue, he said.

The board has continued to maintain it after its summer closure and has retained the skilled-care license for the facility on the theory that both make it more appealing for someone to purchase.

About $41 million of the $42 million in bond payments remains. Much like a mortgage, more money went to interest payments in the first years after the bonds were issued before the county could begin eating into the principal payments.

If voters approve the ability to sell, and a sale is later arranged, revenues would be used to pay down the cost of those bonds, which are otherwise financed by a portion of the county's property tax levy.

Peoria isn't the only spot to have such a referendum on the ballot. Boone County, east of Rockford, is asking voters for similar permission, though that facility is still open and its operation has been outsourced.

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