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LAUREL – Like many long-term care providers, Hillcrest Care Center and Assisted Living is facing financial strain due to rising operational costs, shifts in healthcare funding, regulatory changes, contract labor expense, write-off of resident receivables, the increase/decrease of the number of residents, and the delay in receiving Hillcrest’s Employee Retention Credits from the IRS. The combination of all of these factors has led to an increase in Hillcrest’s monthly net losses, creating concern for Hillcrest’s administration and the Laurel City Council.
At a regular meeting of the Laurel City Council on Feb. 12, 2024, the Council voted to place a local .5 percent sales tax on the May 14, 2024, primary ballot. Voters in Laurel cast their ballots and the measure failed 198 against, 146 in favor. This .5% sales tax could have generated upwards of $110,000 in additional annual support for the Hillcrest Care Center.
In a special meeting of the Laurel City Council on March 15, 2024, the Council voted to increase the City of Laurel’s current $250,000 line of credit at Security Bank by an additional $250,000 to be used for the operating expenses of Hillcrest Care Center and Assisted Living.
During the Jan. 13 City Council meeting, staff and citizens expressed concern for Hillcrest Care Center.
At this same meeting, incomplete financial information was circulated to the public by individuals in attendance. After review, it was determined that no accounts receivable information was included in the documents circulated to the public. This incomplete financial information gave the appearance that there was a $427,781 working capital deficit rather than the actual working capital deficit of $66,385.
According to Jan. 10 financial reports provided to the City Council (generated by the Hillcrest accounting system), Hillcrest Care Center accounts payable (bills outstanding) totaled $427,781 and accounts receivable (receipts coming in) totaled $361,396, leaving a working capital difference (deficit) of -$66,385.
On Friday, the Laurel City Council met to further discuss concerns related to Hillcrest Care Center.
The City Council voted to proceed with the following actions:
• Provide this press release to ensure accurate information is available to the public.
• Host small group meetings with Hillcrest staff. These meetings will allow time for questions and will encourage dialogue between City representatives, Hillcrest leadership and staff.
• Conduct staff surveys to gain employee input in February.
• Develop additional cost reduction and revenue producing strategies. Dan Kuhlman, City Administrator, conveyed that the City of Laurel is in the unique position of owning and overseeing Hillcrest Care Center and Assisted Living.
“From a legal standpoint, we are required to comply with the Open Meetings Act, federal laws, state statutes and policies that are specific to each entity,” Kuhlman said.
According to Hillcrest Care Center and Assisted Living Personnel Manual and Policies, personnel issues are to be handled internally and individually with confidentiality.
“It’s the Council’s goal to ensure that Hillcrest Care Center and Assisted Living remains a welcoming, safe, nurturing and financially viable facility for years to come,” said Justin Erikson, Laurel City Council President.
Hillcrest Administrator Megan Wieck said she understands the concerns raised by staff and the public.
“We want to assure everyone that we are continually striving to improve Hillcrest’s financial outlook, and we remain fully committed to maintaining quality care for our residents,” she said.
