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[Shelbyville Times-Gazette]
Shelbyville, Tennessee ~ Sunday, September 7, 2008
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Nursing home loss explained

Thursday, February 28, 2008

Bedford County Nursing Home had an operating loss in the 2006-2007 fiscal year which ended last June, but non-operating income made up the difference and kept taxpayers from having to foot the bill.

That was the report during discussion of the nursing home's 2006-2007 audit at Tuesday night's meeting of Bedford County Financial Management Committee.

Commissioner J.D. "Bo" Wilson expressed alarm at the $70,000 loss, but other commissioners pointed out that it wouldn't have existed except for a $99,000 judgment against the hospital last year in a pre-2001 patient lawsuit. That judgment would normally have been covered by liability insurance, but the county's insurance carrier at the time went bankrupt.

The county is scheduled to receive a $25,000 refund as a result of the bankruptcy proceedings.

The non-operating revenue received by the nursing home included uses of the memorial fund and forgiveness of a loan made by the county to the nursing home to purchase software at the time the nursing home was first split from Bedford County Medical Center in 2005. Including the non-operating revenue, the nursing home had a $46,000 profit for the 2006-2007 fiscal year.

So far in the 2007-2008 fiscal year, the nursing home is ahead of projections, showing a $20,453 profit for the month of January and a $165,734 profit for the fiscal year as of Jan. 31.

In other discussion at Tuesday night's meeting:

* The county's construction consultant, Bud Melson, reported on various county building projects. A new ambulance station in the Cascade School area is essentially complete, and a long-awaited land deal with Wal-Mart Distribution Center has finally cleared all of its paperwork so that a new ambulance station can be built in Airport Industrial Park.

Melson said renovations to Central High School are 80 percent complete. There have been a few unexpected expenses, but they are within the amount set aside for contingencies.

After changes were made to the plans for Learning Way Elementary School, bids came in at $11.5 million, a savings of $1.2 million over the first wave of bids. Melson, as well as School Superintendent Ed Gray, said the changes will not affect the school's functionality.

Melson said final drawings have been approved for a new Community High School building.

* The committee approved the county's share of expenses for exterior maintenance of the Child Development Center / Community Development Center building on Eaglette Way. The building is jointly owned by the county and the City of Shelbyville.

Finance Director Robert Daniel said the city and county need to review their agreement with CDC; as written, it is a perpetual agreement.

* The committee approved a budget amendment for various county funds and departments. In the general fund, the amendment includes $39,600 in new money, much of it related to increased utility costs and to rental costs for the Youth Services Office.

* The finance committee referred a proposal for selling a city-and-county-owned house on Main Street back to the county commisson's courthouse and property committee for further study. County Mayor Eugene Ray said he had new information about the situation after speaking to city officials.



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