Lutheran Social Services announced it is closing its nursing home and rehabilitation program by early January 2024. Almost 50 residents and more than 100 workers will be impacted. P-J photo by Christopher Blakeslee

Lutheran Social Services of Upstate New York said it will close its nursing home and rehabilitation program in Jamestown by the beginning of next year. Forty-nine residents and 106 positions will be impacted.

“It is with great sadness that the Lutheran Board of Directors and administration have decided that it is necessary to close this great community resource,” Tom Holt, Lutheran president and CEO, said in a statement released Wednesday morning. “Lutheran is currently working with the New York State Department of Health to ensure that this transition is as smooth as possible. Our top priority is to work with every resident, their families and our valued employees, to secure new housing options, care and job placement.”

Full- and part-time employees, as well as those considered per diem, will be impacted by the upcoming closures of the Falconer Street nursing home and rehabilitation program, Lutheran announced. Notice was filed with the state Department of Health and includes the permanent shuttering of Warner Place Adult Day Care, a program discontinued during the COVID-19 pandemic.

Pending the discharge of its last resident, Lutheran said the closings will take place Jan. 2, 2024, if not sooner. In a news release, the organization said the decision will not impact current housing and care at Hultquist Place Assisted Living or Edgewood Communities, both also located in Jamestown.

“I’m saddened to learn of today’s news and sympathize with our seniors and all individuals impacted by this closure,” Jamestown Mayor Eddie Sundquist told The Post-Journal. “There’s a nationwide crisis in offering elder care and that’s unfortunately no different in our community. The city of Jamestown remains committed to working with Lutheran as they continue to maintain Edgewood Communities and Hultquist Place, and will continue pursuing innovative solutions to better serve and support our seniors county-wide.”

In November 2019, G.A. Family Services, an affiliate of Lutheran Social Services, announced it was closing its education and residential treatment facilities, impacting about 100 positions. At the time, more than 60 youth were attending the Learning Center, a school serving students with emotional and learning disabilities and other health impairments related to behavioral needs.

At present, Lutheran said the number of certified skilled nursing beds in Chautauqua County far exceeds the number of residents; at present, Lutheran has 148 beds for its nursing home and rehabilitation program located in the city.

Chautauqua County Executive PJ Wendel said he was “deeply disappointed” to learn of Lutheran’s decision. “This is disheartening news, not just for residents of the nursing home, but also the dedicated staff at Lutheran who have provided exceptional care and support to our elderly residents for many years,” he said in a statement.

“We understand that this closure may have significant implications for the residents who rely on the compassionate services provided by Lutheran employees,” he continued. “In light of these circumstances, I want to assure our community that Chautauqua County remains steadfast in our commitment to supporting and assisting those who may be affected. For residents specifically, our Office for Aging Services stands ready to provide the necessary support and guidance to the elderly residents and their families during this challenging time.”

On Wednesday, Lutheran pointed to federal and state regulatory burdens, decreasing Medicaid reimbursement rates, escalating delivery costs, a shrinking skilled health care workforce and the current incentives to have elders and those requiring medical rehabilitation to remain at home for care.

“We know this decision is coming as a surprise to many but we are dealing with harsh industry realities,” Holt said. “Hard decisions have to be made to keep the other county-wide facilities viable financially. There just aren’t enough people, both residents and staff, to keep all the facilities open, providing optimum levels of care. We can’t be three years down the road, not paying our bills and be financially insoluble where it negatively impacts the other programs under the Lutheran senior housing umbrella.”

Regarding occupancy rates, Lutheran said local skilled nursing facilities have been running at an average 65%. The occupancy rate, the organization said, is significantly lower than the “optimum” 90-95% that is needed to maintain financial sustainability.

Occupancy rates began to decline prior to the COVID-19 pandemic, and have only fallen further in the last two years.

“Lutheran’s longstanding mission is to offer care that supports an individual’s journey through life with compassion, dignity and respect,” said Terry Turner, Lutheran board chairwoman. “In order to fulfill this, our pathway now includes how we evolve and innovate for the well-being of our county-wide senior population, right sizing a financially-strained industry, and creating a stronger long-term care system. We will be with our residents and employees every step of the way.”

In-person meetings ahead of the closures will be scheduled with residents and families. Lutheran said it will “coordinate, assist and ensure” that arrangements are made for residents who wish to receive services from a nursing home of their choosing.

Lutheran said it also will assist its employees according to requirements outlined by the Department of Labor Worker Adjustment and Retraining Notification, connecting with local Workforce Investment Board resources, assisting with placement at surrounding health care facilities.