A financially struggling Herkimer adult care facility now will be operated by a corporation with offices in Syracuse and Rockland County.
Folts Center and Claxton Manor - nursing and adult homes commonly referred to as Folts Homes - now will be operated by FRNC, LLC, said Fred Scerbo III, the facility’s administrator.
“The New York State Department of Health appointed the receiver in an effort to continue operations of the facility,” Scerbo said in an email. “This route was chosen due to the financial difficulties, with the goal to remain open.”
The Herkimer facility employs about 250 people and currently has 214 residents, he said.
State officials Wednesday confirmed the facility’s current operators - nonprofit Folts Home Inc. - had requested the nursing home and the adult home be appointed a receiver. It was put into a receivership Oct. 1, officials said.
The receivership allows the state to appoint an operator to the facility, Scerbo said.
“They’re reputable owners, who have a history of turning around troubled facilities,” he said of the corporation.
The nursing home now will operate as Folts Center for Rehabilitation and Nursing and the adult home known as Claxton Manor is now the Pavilion at Claxton Manor, Scerbo said.
The change in names is due to the new operator, which he said operates under its own certificate.
When asked whether employees might be let go to help with the financial situation, he said, “No final decisions have been made, but it is anticipated that substantially all employees will remain, however, the facility needs to be financially turned around.”
While the facility previously operated as its own entity with a board of directors, Scerbo said the receiver will make operational decisions.
The board still has “responsibility to the physical assets and the property,” he said. “I don’t know what the future of (the board) would be.”
This latest development comes about a year after the state Attorney General’s Office began an investigation into “financial irregularities” at the facility.
Scerbo had said he understood that the facility itself was not the target of the investigation. State Attorney General’s Office officials said Tuesday they couldn’t comment on an ongoing investigation.
Last summer, Folts Homes announced the Aug. 31 closure of the childcare center there due to “economic conditions affecting New York State.”
Then in October, Chief Executive Officer Ralph Reid and Chief Operating Officer Ernest Orts resigned due to “financial considerations.”
Scerbo said the next step for the facility is to evaluate financial and operational aspects with the goal of remaining open long term.
Page 2 of 2 - Furthermore, Scerbo said resident care has not been interrupted.
“The goal is to continue to provide high quality care and be a major employer for the community,” Scerbo said.