The adult day serves an average of 32 senior citizens a day and will continue to operate, officials said.
HOLYOKE -- More than 50 senior citizens will still have a place to go as the adult day care center at the Holyoke Geriatric Authority will continue operating but under new management and at a new site, officials said this week.
Meanwhile, the authority itself is essentially closed. The shut down was forced by years of financial problems with only about four employees left at the 45 Lower Westfield Road facility wrapping up bills and maintenance. The last residents went to other facilities April 24.
"Isn't that sad?" said Amy Owsiak, accounts receivable manager, who has worked there 24 years.
Owsiak and Administrator Michael Stroetzel said Thursday (June 26) the adult day care center will be taken over by Community Health Development and is expected to move to a new site here in July, but further information was unavailable.
Rick Caneschi, director of the adult day care center, said officials with the organization that will absorb the center asked him to refrain from discussing details in the media.
"It will remain in Holyoke," Caneschi said.
The adult day care center at the Holyoke Geriatric Authority, 45 Lower Westfield Road.(MIKE PLAISANCE / THE REPUBLICAN)
The center currently takes care of 54 individuals, though most don't come every day. The average number is 32 a day as children and other care-givers drop off an adult for a day or two a week to spend time with peers, he said.
Established by the state Legislature in 1971, the authority is broke and currently involved in a tangled bankruptcy case with the city. The nursing home was a facility that was overseen by a board consisting of three people appointed by the City Council and three appointed by the mayor, with those six choosing a seventh member.
Owsiak said the authority was at the intersection of two colliding truths: The facility was necessary because it took in seniors whose families couldn't afford a privately run nursing home. But the health care industry's changes in the past two decades battered the authority with costs.
"This is where the poor people could go," said Owsiak, looking at a nearly empty parking lot. "The industry changed."
Owing millions of dollars to the city, for everything from pension payments and utility bills to health insurance costs, the authority has experienced bad news like falling dominoes.
In September, the state auditor said mismanagement that included alleged misuse of credit cards and failure to seize revenue opportunities led to a $2.2 million debt to city agencies.
Mayor Alex B. Morse and Patricia C. Devine, who was then chairwoman of the authority board, said Jan. 16 the city and authority would work together to find a buyer for the facility.
But shortly after, the authority began being late in getting paychecks to employees as payroll problems signaled the financial condition had worsened.
The reasons cited are that government reimbursements have failed to cover the complete health care costs and that years mismanagement left the facility without enough money, officials have said.
According to the audit, the authority missed out on fees for outpatient physical therapy services, renting out unused space and renting out vans to transport elderly people from other facilities.
Among inefficient and unauthorized transactions cited in the audit were management's failure to research availability of funding for projects, such as one in 2009 to seek a smaller facility; making purchases such as $27,924 for a Ford pickup truck and $47,275 for an industrial dishwasher without soliciting competitive bids that could have netted lower prices; lack of written policies in the period the audit covered of Jan. 1, 2010 to June 30, 2012 to ensure that cash accounts were reconciled monthly; and lack of enforcement of procedures for use of the authority's three credit cards, such as the requirement they be locked in a safe when not needed for a specific purchase.
Devine, a former city councilor, abruptly resigned as chairwoman Feb. 19 in a departure still unexplained. The state audit covered the period of Jan. 1, 2010, to June 30, 2012, which mostly preceded the tenure of Devine, who became board chairwoman in April 2012.
Amy Owsiak, accounts receivable manager, has worked at the Holyoke Geriatric Authority for 24 years.(MIKE PLAISANCE / THE REPUBLICAN)
The board fired Donald E. Wilcox as executive director on Feb. 21 after a three-hour executive session. He was fired "for cause," board members said, but they wouldn't give specific reasons. Wilcox' lawyer has said a wrongful termination lawsuit was likely to be filed on his behalf against the authority in Superior Court in Springfield.
The authority board reorganized and voted 3-2 March 3 to contact the state Department of Public Health about closing. The state gave permission and the official closing date was May 13.
The City Council and Morse, along with Morse predecessor former mayor Elaine A. Pluta, grew increasingly frustrated at the city having to bail out the authority when it was unable to pay bills. There was $146,973 for health insurance costs in June 2013 and a December 2011 payment of $465,000 to cover authority pension costs dating back to 2008.
The authority board voted to file for bankruptcy and after an initial hearing before U.S. Bankruptcy Judge Henry J. Boroff on April 30, the next hearing dates in the case are July 10 and 11, said Kara Lamb Cunha, second assistant city solicitor.
Among issues in the bankruptcy case are whether the city, the authority's largest creditor, ever will be paid the more than $5 million that Steven Weiss, a bankruptcy lawyer retained by the city, says is owed, and whether the city will be able to gain control of the Lower Westfield Road property and sell it to recover money owed.
The bankruptcy case is all that is keeping the lights turned on at the authority. Owsiak said she is handling final bills.
Stroetzel said an auction of beds, furniture and other items cannot happen until the bankruptcy case is settled. The long hallways that once bustled with hundreds of residents and employees are dark.
Stroetzel has worked at the authority only since February. Like other employees, he said he loved working there because the workers and residents were nice and he will miss it.
"I mean, there's not much else to say, really. We've got some billing and we've got some final work to do. There is work to do, but it isn't the same," Stroetzel said.
"Now, it's just a matter of, let's clean up and let's not tarnish the Geriatric Authority," Owsiak said. "I just want to do this with dignity."
"No matter what you heard on the outside, this has been a great place," Stroetzel said.