Will South Bend's Portage Manor be saved from financial collapse?

June 08--SOUTH BEND -- Portage Manor -- the St. Joseph County-owned residential care facility for the poor, disabled and mentally ill -- has lost more than $1 million since 2013 and is on a path that could eventually cause it to close.

Steps have been taken, however, to try to financially stabilize the 144-bed facility on Portage Avenue, which is among only a handful of "county homes" that still operate in the state. It serves seniors ages 65 and older, along with adults ages 18 and older who have disabilities.

The two-story brick facility, which has struggled in recent years to fill its 144 beds, has pulled money from its reserve fund to stay afloat and is still operating at a loss. Though it had more than $3 million in reserves in 2013, it started this year with only $1.8 million. Last year, it lost $300,000.

Robyn Challinor said the alarming trend wasn't exposed until she took over as administrator of Portage Manor a year ago after previously serving as director of nursing. She replaced Louann Becker-Pruett, who served as administrator since the early 1990s.

"When I came in, we didn't have access from the county to review our accounts. We gained access and found out this is an ongoing trend," she said, adding that the former administrator wasn't aware of the problem. "She thought there was a separate fund with a healthy balance."

When Becker-Pruett was asked Wednesday about the dwindling reserves, she said she "wasn't aware" of the situation but noted that she suffers from memory loss.

County Council members were taken off-guard when Challinor recently told them about the trend. It was the first time a red flag was raised, they said.

County Auditor Mike Hamann said he was "very surprised" to learn about the situation. He said the former administrator previously led officials to believe "everything was hunky-dory."

Although the County Council approves Portage Manor's budget, Hamann said, it has only "limited" financial oversight. Though the county owns the facility, it doesn't provide any funding for it. Money comes from the state.

Because the facility is state-funded, Hamann doesn't believe it was the responsibility of the auditor's office to sound the alarm.

County Treasurer Mike Kruk, who has served on Portage Manor's volunteer board since 2013, was also surprised he didn't learn about the dilemma until last year. He said the former administrator never told the board about problems.

"No one ever waved a red flag and said we were spending cash reserves rather rapidly," he said. "If it continues to happen, we'll be out of business."

Challinor, meanwhile, has taken steps to get the facility back on track. More beds, for example, are being filled this year.

Revenue for Portage Manor comes from residents who qualify for the state's Residential Care Assistance Program. Funding for that program, which hasn't always been available in recent years, provides about $1,600 a month per resident for room and board.

The facility has typically had 130 residents in recent years, but it now has 137. Of those residents, 129 qualify for state funding, two cover the cost on their own, five cover part of the cost and one isn't yet paying anything.

The Shady Rest Home facility in Plymouth is being shut down, Challinor said, and a handful of residents were recently transferred to Portage Manor. And though more residents have increased revenue, staff was trimmed earlier this year to reduce expenses.

Two full-time employees were laid off, she said, and a handful of other full-time employees were switched to part time. Those moves cut about $75,000 from the payroll.

Challinor said that although the facility will operate at a loss this year, she thinks it will be "significantly less" than the $300,000 loss in 2016. Eventually, she hopes it will go from losing to building reserves.

A nonprofit called Friends of Portage Manor, meanwhile, was recently launched so tax-deductible donations can be made. Challinor said the group hopes to soon raise enough money to repair two bathrooms and do some exterior painting of the building.

She hopes the community will step up to help rescue the facility, which was built in 1906 and still plays an important role.

"We've taken homeless people off the street who were mentally ill, who have disabilities and who were living under a bridge," she said. "And that's what the county home is for, to help the county with its indigent population and provide an affordable solution for aging seniors."

tbooker@sbtinfo.com

574-235-6070

@Tbooker24

___

(c)2017 the South Bend Tribune (South Bend, Ind.)

Visit the South Bend Tribune (South Bend, Ind.) at www.southbendtribune.com

Distributed by Tribune Content Agency, LLC.