OBSERVER Photo by Gregory Bacon Heritage Ministries announced Wednesday morning that they will be closing their Gerry facility, Heritage Village.

GERRY — Another nursing home in Chautauqua County is going to be closing its doors.

Heritage Ministries announced Wednesday morning that the decision has been made to close their Gerry facility, Heritage Village, citing ongoing financial and operational challenges facing the long-term care industry. According to a press release from Heritage, Heritage Village has faced similar struggles to many nursing homes across the state since the COVID-19 pandemic, including operating at a significantly reduced census, serving fewer than 40 residents. The release also notes that Heritage will work closely with the state Department of Health to ensure a safe, orderly, and resident-centered transition for all individuals currently residing at Heritage Village.

Heritage president and CEO Lisa Haglund spoke with the Post-Journal about ongoing financial issues back in August, and some cost-saving changes they were making at the time, including stopping offering employees holiday pay, along with temporarily pausing their 401K matching contribution, eliminating double-time pay for per diem employees, and implementing a temporary furlough program, allowing employees to take time off for approximately two weeks without pay voluntarily, but also with the promise that it is not a layoff or will not affect things such as promotions or employment status in the future. At the time, Haglund told the Post-Journal that Heritage’s troubles come from “a little bit of everything”, including federal and state funding cuts and legacy debt from before the COVID-19 pandemic, along with the ongoing rise of costs and inflation. She noted that Heritage offers significant paid time off for employees, with most being offered ten to 20 days along with paid holidays. The implementation of both the paid holiday reduction and voluntary temporary furlough program was said back in August to save the organization around $100,000 from each decision for the year.

Both Senator George Borello and County Executive PJ Wendel released statements on the closure Wednesday morning following the announcement.

“I was saddened to learn of the impending closure of Heritage Village, a skilled nursing facility that has served our community and cared for our most vulnerable neighbors for generations,” Borrello said in his statement. “My staff and I have worked closely with the organization’s leadership in recent years to try to help them stabilize their finances, secure state assistance, and find a path forward, but the challenges they faced proved overwhelming.”

Borrello continued on by referring to the closure as not being an isolated failure but a symptom of a larger, systemic problem. This problem, he said, ties back to New York’s chronically low Medicaid reimbursement rates, which he said are making it increasingly impossible for nursing homes and long-term care providers, especially non-profits, to keep their doors open.

“When the state pays far less than the actual cost of care, even well-run, mission-driven organizations are put in an unsustainable position,” Borrello said in his statement. “My thoughts are with the residents, their families, and the dedicated staff who have given so much to this community. This is a sobering reminder that unless the state takes meaningful action to address its current nursing home crisis, we will continue to see these facilities close and rural communities left with a growing shortage of long-term care.”

Similar to Borrello, Wendel also cited the ongoing struggles of nursing homes and long-term care facilities across the state, saying that the closure of Heritage Village is difficult news for residents, families and employees.

“Heritage Village has served Chautauqua County families for many years, and that legacy is important,” Wendel’s statement said. “Long-term care facilities across New York State continue to face significant financial, operational, and workforce challenges. This announcement reflects broader, systemic pressures facing the nursing home industry, including reimbursement structures that do not always keep pace with the true cost of care. Addressing these challenges at the state level is critical to maintaining access to long-term care services in communities like ours. I want to thank Senator George Borrello and Assemblyman Andrew Molitor for their continued advocacy on behalf of nursing homes and long-term care providers across our region.”

While Wendel noted that seeing this facility close is disappointing, it is important that residents and employees will have opportunities to transition within the local system, helping ensure continuity of care and employment within Chautauqua County.

“I have met with and spoken regularly with Heritage’s leadership, including CEO Lisa Haglund, and I have confidence they are working to manage this transition thoughtfully and responsibly,” Wendel said in his statement. “For residents and families who may have questions or need assistance navigating next steps, Chautauqua County’s Office for Aging Services is available to help connect individuals with resources and long-term services and support. Our NY Connects intake line is available at 716-753-4582. My door remains open, and I remain optimistic about Heritage’s continued commitment to providing quality care to our community.”

Haglund noted that Heritage’s leadership team has worked closely with its local Board of Directors on a long-term strategic plan to stabilize operations and preserve access to skilled nursing services in the region. In addition to consolidating skilled nursing services, Heritage is evaluating and streamlining other affiliated entities to focus on its core mission of serving the healthcare needs of Chautauqua County residents.

“This was a very difficult but necessary decision,” Haglund said in a press release. “Closing Heritage Village allows us to focus our limited staffing, financial resources, and operational support on our remaining skilled nursing communities–Heritage Park and Heritage Green–so that we can continue to provide high-quality care in Chautauqua County.”

Haglund noted in the press release that while some factors remain beyond Heritage’s control the closing of Heritage Village is believed to be a necessary step to position Heritage for long term-stability. Haglund said that with continued community, staff and state support they remain committed to serving Chautauqua County and to making the hard decisions necessary for a fiscally responsible and sustainable future.