Nevada County Picayune and Gurdon Times Newspaper Archive

Meeting Set For Pineview

Gurdon residents interested in keeping Pineview Care Center in the city will be meeting Friday to discuss the issue.

The meeting, scheduled for 7 p.m. in the Gurdon Middle School auditorium, will be an open forum to decide how residents should ask the Arkansas Health Services Agency to rescind its approval for letting the nursing home leave Gurdon.

Pineview's owners have been granted tentative approval to move the nursing home to Arkadelphia and expand its capacity from 60 beds to 72 beds.

Richard Donovan, an attorney with the Rose Law Firm in Little Rock, is representing Beverly Enterprises of Arkansas, who also opposes the move.

In fact, Donovan filed the appeal for Beverly.

According to Donovan's files, the new nursing home would be constructed along Twin Rivers Drive at an estimated cost of $1,573,000.

Owners of the nursing home say their reasons for seeking the move are basically because of the current medical climate in Gurdon. Ten years ago, there were three doctors and a new hospital in the city. Now, there are no physicians, nor is there a hospital in Gurdon.

Pineview's owners say their clients need to be closer to medical services because they are a vulnerable population.

Figures show 82.6 percent of the money needed to build a new nursing home will come from a commercial loan from Horizon National Bank in Arkadelphia. The remaining 17.4 percent will come from an equity fund.

Under the proposed agreement with Horizon, the Pineview owners will get the loan at an 8.75 percent interest rate for 15 years.

They argue a 72 bed home will be more efficient than the current 60 bed facility in Gurdon, and say the lack of doctors and a hospital in Gurdon has an adverse affect on the occupancy level in the city.

However, the occupancy rate at Pineview is currently 86.16 percent. The owners feel these figures will rise if the nursing home moves to Arkadelphia.

But, Donovan argues the opposite. In fact, his clients, Beverly Enterprises, claims the occupancy rate will actually drop if a new nursing home is constructed in Arkadelphia.

The appeal filed by Donovan states such a move will lead to staff attrition which will stress an already tight market in Arkadelphia.

He also said the applicants have failed to explain how they will bring $273,000 in equity to the table to fund the project, should it be approved.

In addition, Donovan argues the occupancy rate in all nursing homes in Arkadelphia will decline if a new one is built, which will result in higher costs of operation for all such facilities, and be passed on to the clients -- many of whom are on fixed incomes.

According to Donovan, such a move would also have a negative effect on the Gurdon economy and create a hardship for the people of Gurdon who have loved ones in the nursing home.

In his argument, Donovan said the owners of Pineview may also be violating a covenant with the City of Gurdon.

When the facility was first built, the property where it is located was donated by the citizens of Gurdon with the proviso it would remain in Gurdon as a service to the city.

Pineview, he said, would be unjustly enriched if it is allowed to accept the deal with the people and violate the proviso by moving to a perceived more profitable location.

While residents of Gurdon will meet Friday night at 7 in the GMS auditorium to formulate their battle plans, the Arkansas Health Service Agency has scheduled a hearing on the appeal for July 16 at 10:30 a.m. in Little Rock at the ADH auditorium.

This meeting will be open to the public, and residents of Gurdon are urged to attend.