McGuire Group is considering selling its Long Island nursing home in response to rising labor costs and the high price of doing business in that region.
The Brookhaven Health Care Facility in Patchogue is among six senior care facilities owned by the company and the only one outside of Western New York.
The 160-bed site on Long Island offers skilled nursing care, sub-acute rehabilitation and respite/short-term care.
F. James McGuire, CEO, said the company has met repeatedly with the union that represents the workforce at the site, but they've refused to make concessions. That's led to ongoing conversations with potential buyers interested in the site, regardless of its current profitability, he said.
"The benefit costs are 41 percent of the gross payroll and are just intolerable," McGuire said. "We're forced to explore strategic alternatives for that facility. It's just not practical."
Founded in 1973, McGuire Group provides such services as sub-acute and outpatient rehabilitation, 24-hour skilled nursing care, memory care, palliative care and respite/short-term care.
In all, the private company employs 1,650 workers who care for more than 1,100 residents and patients in Western New York.
In recent years, the company made other operational changes at its sites to increase profitability, including a sale-leaseback deal in 2011 that included selling all six sites for $100 million to Nationwide Health Properties Inc. of Newport Beach, Calif. The sale of the Long Island home brought $17.1 million.
But the cost of operations on at Brookhaven remains too high, McGuire said.
The company owned a second site on Long Island in Smithtown, but sold that facility in 2005 despite the fact it was the newest and among the nicest facilities.
"We lost money year after year and it was intolerable," he said.
"We can't be in this business to lose money," McGuire said. "Balancing quality and financial stability is an incredible challenge."
Despite the situation on Long Island, McGuire Group is interested in expanding operations here in Western New York if the right opportunity comes along.
"We would love to explore collaborative opportunities with those single, free-standing facilities that want to remain local," he said.