Smith/Packett Eldercare Proposal Covers All the Bases

Smith/Packett Med Com LLC has spent more than three years mounting a coalition of support for its plan to build a tiered elder-care project in Abingdon – one that would include a skilled nursing care center, assisted living facilities and cottages for older citizens who want to live independently, but realize they eventually will need more assistance.

Earlier this month that effort culminated with the Abingdon Town Council voting unanimously to support the company’s plans, and unanimously agreeing to buy property for the center and sell it back to a developer.

Of course, Smith/Packett aims to be that developer.

On Monday, Hunter Smith, the company’s vice president for development, will speak to the Washington County Board of Supervisors and Planning Commission
regarding a rezoning request for the property, which is off Interstate 81 and near the site for the new Johnston Memorial Hospital. The property is zoned for general agricultural use and must be rezoned to general residential for the elder-care project.

Smith hopes the rezoning is the last hurdle the company must clear before July 1, the state deadline for applications from interested parties wanting to develop a new nursing home in Abingdon.

But Smith/Packett won’t be the only applicant.

While the company has been far out front on the effort, it will face competition from another group interested in building a tiered-care center in Abingdon.

The Valley Health Care Center, which operates a nursing home in Chilhowie, is part of that group.

In separate meetings last week, this newspaper’s editorial board met with Smith from Smith/Packett and with Valley Health’s administrator, Kimberly Clark, who was joined by Martin Donlan, an attorney with the Williams Mullen firm representing Valley Health and the competing group.

Valley Health looks like a late entrant, but the competitive process at the state level is really just beginning. It began in earnest in May when the state asked for applications from providers who believe they can operate a 120-bed nursing home.

Valley Health has a solid track record of operating skilled nursing homes and assisted living centers from North Carolina to Massachusetts, but company officials initially refused to divulge their plans prior to the July 1 filing date. After several days of discussions, Clark and Donlan agreed to an editorial board meeting Friday afternoon.

Both groups aim to first build a skilled nursing center off I-81 near the new hospital. Both also aim to later add assisted living centers, and then independent living cottages or condominiums for singles or couples.

The major differences?

Smith/Packett already has garnered support from college officials, legislators and regular citizens. It has the backing of the Abingdon Town Council and a commitment to buy and sell to Smith/Packett the property targeted for the center. It has three years of measurable work behind it.
Smith/Packett’s initial plan is for a 120-bed skilled nursing center.

Valley Health’s plan is to create a 180-bed nursing center. To do that, the company would shift 60 of its existing, approved nursing home beds in Chilhowie to the new center in Abingdon. Clark said the aim is to create more assisted living space in Chilhowie while providing more nursing home space in Abingdon. She said many of the existing nursing home patients in Chilhowie are from Washington County and Abingdon and might want to return to the area. But when asked if she had commitments from residents or their family members, she said that was not arranged.

We too believe those residents will likely want to come back, and the plan by Smith/Packett creates a competitive dilemma for Valley Health, which needs to preserve its market by becoming more competitive in Abingdon.

We also know that Smith/Packett has worked hard to earn community trust and support in Abingdon. The company was encouraged to consider the area by community leaders Jack White and Bob Johnson, who sought a developer that could move forward after an earlier attempt with another company stalled.

Based in Roanoke, Smith/Packett has developed or acquired more than 150 long-term and senior housing facilities in the Southeast valued at more than $1 billion.

The strong support the company has generated in Abingdon is evidenced by numerous letters from citizens, legislators and community leaders. District Three Senior Services, the federally designated Area Agency on Aging, writes: “We do strongly support the concept of expanding the availability of choices in housing and long-term services” and notes that the “proposed complex could be an asset to the senior population and the community at large.” But because the agency serves as a long-term-care ombudsman for the region, it does not want to express a preference among competing proposals.

We too recognize the need for more local nursing home beds, as well as assisted and independent living facilities. We also believe competition is the best way to determine the strongest proposal.

But so far, Smith/Packett should get additional credit, along with local citizens, legislators and community leaders, for pushing to get the demographic studies proving the need exists and the enabling legislation for the certificate of need.

Valley Health does feel like a late player. Clark noted Friday that she has long seen the need for more nursing home beds in Abingdon, but it was Smith/Packett that stepped forward, did the research and pushed for the legislation.

Noticing a problem but failing to act does not generate confidence from the public, the council nor this editorial board.

Smith/Packett’s plan starts with a 120-bed skilled nursing center that is expected to cost up to $12 million and could begin in 2010. The assisted living center is estimated to cost another $10 million and would be built in 2015. The estimated cost for the independent living project is $10 million to $11 million and would follow successful completion of the earlier stages, once there is financial commitment from interested buyers.

The proposed location makes good sense – it’s near the new hospital site and large enough to accommodate Smith/Packett’s full-scale plans.

Valley Health also has a real estate purchase agreement for land off I-81 near the new hospital. It also aims to first build a skilled nursing center, but Clark and Donlan would not provide cost estimates.

Because the need obviously exists, this newspaper strongly supports the effort to bring more nursing home and assisted living care to the region. Older citizens want to stay in the community as they age and families want their loved ones to keep living nearby. They need more options.

Smith/Packett has done its homework and diligently built a coalition of support over more than three years. The company also has a proven track record of service and professionalism.

We believe both plans deserve respectful consideration by the state, but Smith/Packett’s proposal deserves added praise for years of work already completed.