Why Centre County’s $600K land purchase from Centre Care is ‘more than a transaction’

The Centre County Commissioners unanimously approved the purchase of an unused land parcel from Centre Care Tuesday as part of efforts to help the nursing home in its post-COVID recovery plan, and to support long-term care for residents with limited financial resources.

The near-seven acre land parcel is located along Persia Road, and is being subdivided from a larger, 13.5-acre plot. The $600,000 purchase will serve as the second monetary contribution from the county to Centre Care in a series of three contributions that will add up to $2 million, once completed.

“We are deeply grateful to the Centre County Board of Commissioners for their continued support and partnership,” Centre Care Administrator Andrew Naugle said in a written statement. “The acquisition of this land represents more than a transaction — it is helping lay the groundwork for long-term stability and innovation at Centre Care.”

The county has no plans for the land at the moment, but Commissioner Mark Higgins said that in the future, it can be used to “benefit the community” in some way.

The first of the county’s three funding boosts to Centre Care was made in early February, when the commissioners pledged $900,000 up front to the nursing home to aid its new Neighbors Supporting Neighbors Fund. The fund is meant to “help offset the cost of care for residents who do not have the financial resources to fully cover their residence at Centre Care,” per the nursing home’s website.

The third, $500,000 funding boost — which is the last of county’s American Rescue Plan funds — will come in the form of a grant, provided that Centre Care completes all of its milestones related to marketing and the setting up of a charitable giving organization.

The county’s allocation to Centre Care came after about a year of discussions with the nonprofit’s board, which took over ownership of the nursing home from the county in 2013. The facility was turned it into a nonprofit and dropped its former name, “Centre Crest,” before moving to its new building at 250 Persia Road from its Howard Street location in 2021.

While the $2 million allocation will likely keep the nonprofit afloat for about two more years, the large financial contribution will also be the county’s last to Centre Care, with both the commissioners and nursing home officials urging residents to continue their donations.

Naugle said that since the county’s first monetary contribution in February, the support provided to the nursing home from residents has already increased substantially — and in multiple ways.

“We are excited to announce that we have 100% board participation in [the Neighbors Helping Neighbors Fund], and 100% key employee participation,” Naugle said. “We’ve already gone above what we expected from those individuals, and we had a great turnout at Centre Gives for our volunteers too. Since we met with the commissioners last, our volunteer programs themselves have had more volunteers as well.”

This year Centre Care Volunteers raised $16,935 from 71 donors at this year’s record-breaking Centre Gives event.

Centre Care is the largest Medicaid-supporting nursing home in Centre County, with around 75% of its 240 beds designated for Medicaid patients. The average cost gap for Medicaid patients at Centre Care sits at $125 per person, per day, according to Betsy Boyer, the president of Centre Care’s board.

Low reimbursement rates and rising costs — as well uncertainty on the status of the Medicaid program at the federal level — have left Medicaid-supporting nursing homes across the county struggling to stay afloat, although Centre Care is not currently operating at a deficit.

According to Higgins, over the next 25 years, the amount of Centre County’s super seniors — or people aged 85 or older — will nearly double, increasing the need for Medicaid beds.

“The demographics on this are only going to get tougher,” Higgins said.

Commissioner Steve Dershem agreed, noting that the amount of Centre Care’s Medicaid beds are limited, and once they’re gone, they can’t be brought back.

While the nursing home still has 240 total Medicaid-designated beds, staffing issues have temporarily decreased that number to 220 beds, with around 70% of them currently occupied.

“So many other counties have experienced this shortage of beds, so we are blessed to have you folks leading the charge to make sure that the facility stays vibrant, but that’s an ongoing challenge,” Dershem said.

He continued: “We need to — as a community, as a county, as a region — respect the fact that we need to support Centre Care as best we can, literally every week. ... The need is going to be omnipresent, and it’s going to be ever-present for as long as the eye can see, because I don’t see any point in the future where this area is going to be lowering its population of seniors and other folks that need those services.”

To donate to Centre Care, visit www.centrecare.org/donate.