By JOSEPH FITZGERALD

WOONSOCKET — Government cutbacks, the state’s “imbalanced” long-term care system, a strained operating budget and an inability to meet expenses — including upwards of a half-million dollars in mandatory state fire code upgrades — are all being blamed for the demise of St. Francis House, a non-profit assisted living facility slated to shut its doors in October.

“While we were forced with no other option but to close St. Francis House in October, I am proud of the dignified and peaceful home we created for so many elderly with little or no means,” Director Helen Stradone said in a prepared statement released Wednesday by the Diocese of Providence, which owns the tax-exempt property at 167 Blackstone St.
“As a ministry of the Catholic Church, the work we perform is the work of Christ, providing for the least among us,” Stradone said. “The staff will work tirelessly to see that each of our residents secures suitable housing at another facility.”
Diocese spokesman Michael Guilfoyle said Stradone has already begun that process and is contacting similar nearby facilities.
He said staff at St. Francis House were notified that the facility would close late last week, while residents — there are 46 currently living at the facility — and their families were told last Saturday.
News of the closing of St. Francis House was also confirmed yesterday by the Rhode Island Association of Facilities and Services for the Aging, an affiliate of the American Association of Homes and Services for the Aging.
St. Francis House, as well as several other local non-profit nursing homes and assisted living facilities, including Ballou Home for the Aged, Mount St. Rita Health Center and Saint Antoine Residence, are all members of the RIAFSA.
“RIAFSA is saddened that St. Francis House, a valuable member for almost 20 years, will be closing,” said RIAFSA spokeswoman Mary K. Talbot.
“As a non-profit assisted living provider for a largely elderly population, St. Francis was a unique community whose residents received excellent care.”
St. Francis House employs 22 full- and part-time individuals and staff affected by the closure will receive priority hiring status at other Catholic facilities throughout the state, according to the diocese.
“This closure will have a significant impact, residents will have to find appropriate new homes, and dedicated staff will be displaced in a bad economy,” Talbot said. “These staff members will be working one-on-one with each resident to find a suitable new home over the next few months, which will be a challenging process given the scarcity of subsidized assisted living options for older individuals.”
Opened as a home for working Irish women by the Franciscan Sisters of Allegany, St. Francis House was converted to an affordable living facility in the 1930’s. St. Francis House primarily serves low-income elderly who require assistance with normal daily activities such as medication administration and personal care, but do not qualify for nursing home care.
Many of the residents receive federal and state assistance to cover the home’s rates, however, the rates charged do not provide the necessary funds to cover the costs of running the home, according to the diocese. The Catholic Charity Fund Appeal provides financial resources to offset deficits.
The aging facility has been stuggling financially with monthly deficits of $10,000 and was unable to keep up with operating costs and needed capital repairs. According to officials, the facility was under the gun to address deficiencies identified by the state Fire Marshal’s Office and was looking at having to spend between $250,000 and $500,000 in upgrades to the sprinkler and fire alarm system as well as other building repairs.
According to Scott Caron, chief of inspections for the state Fire Marshal’s Office, after a number of inspections, the facility was given a compliance order in late December of 2008 to make repairs to the sprinkler system, which he called antiquated. He said the sprinkler system heads themselves did not meet current codes that went into effect in February 2004 as a direct result of the fire at The Station in West Warwick that killed 100 people.
In addition to deficient sprinkler heads, the system itself did not provide adequate coverage throughout the building. There were also some problems with fire alarms in the building, which needed to be upgraded.
Typically, said Caron, sprinkler systems carry “considerable costs” when
it comes to repairs.
“Sprinkler systems actually came out about 100 years ago,” said Caron.
“Unfortunately, some of them that we see are almost that old.”
He said the latest inspection report showed that 59 people were living in St. Francis House when fire marshal’s personnel last visited the site.
St. Francis House’s financial difficulties can also be attributed to government cutbacks and low reimbursement rates, according to Talbot.
“Like many providers in Rhode Island, St. Francis has had ongoing budgetary struggles due to the low reimbursement rates, most of whom are on subsidized programs,” she said. “Aging services providers, including assisted living and nursing homes, have been profoundly affected by government cutbacks over the past 18 months. Our member agencies have responded by cutting ancillary programs and services, but often there is there is nothing left for unexpected expenses. When costly repairs do arise, the question has to be asked whether additional sacrifices can be made or if the institution can simply no longer care for its residents. In this case, the answer to that question meant that St. Francis House had to be closed.”
Talbot said St. Francis House’s demise “highlights the fragility of the long term care system in Rhode Island.”
“Subsidized assisted living is often looked at as a critical component of rebalancing under the Global Medicaid Waiver, but the low reimbursement makes it very difficult to meet expenses, let alone provide for any capital repairs,” she said.
In fiscal year 2009, she added, the state reduced its contributions to those providers who take residents on Supplemental Security Imcome, instead using the 5.8 percent federal Cost-of-living Allowance as an offset. The upshot was no rate increase for those providers.
“RIAFSA and others warned at the time that this could result in providers closing, and unfortunately we were all too prescient,” she said. “We were not crying wolf.”
Talbot said the demise of Saint Francis House does not have to be “an industry bellwether.”
“As the Global Waiver is implemented, we need to ensure that subsidized assisted living with quality providers is a practical option,” she said. “The status quo, now exacerbated by the loss of a high quality, well-regarded provider, is clearly unsustainable. Small steps have been taken under a proposal in the fiscal year 2010 budget, but a more comprehensive approach to rate reform must be a priority as we move forward.”
As for the property that houses St. Francis House on Blackstone Street, Guilfoyle said there are no plans yet to sell the building. “Our priority now is to find new homes for the residents,” he said.