HomeMy WebLinkAboutOIH - Info for BOS discussion 10 21 16
October 21, 2016
Libby Gibson
Town Manager
Town of Nantucket
16 Broad Street
Nantucket, MA 02554
Re: Information for BOS Meeting
Dear Libby,
Please find attached an updated chart that summarizes the various alternatives we have discussed thus
far. The intent is to provide you information that can help in your discussions with the Board of
Selectman.
The attached chart highlights the financial outcome of different scenarios, ranging from development of
40 skilled nursing beds in either a traditional/institutional building or small house model, to the
development of 30 skilled nursing beds and 10 assisted living units.
If you have any questions, please do not hesitate to reach out to either Jude or myself.
Regards,
Toby Shea
cc: Jude Rabig, Rabig Consulting
Toby B. Shea, CFA
8 Adeline Road I Beverly, MA 01915
Tel: 978‐998‐4579
Cell: 978‐884‐7870
Email: tshea@skadvisors.net
Our Island Home
Scenario Analysis
Financial
Demographics
Please note that the extensive demographic information which was presented in our initial report generated
the recommended 30/10 mix of SNF and AL. This model was aimed at meeting projected service needs and
included the calculation that Sherburne Commons and the hospital were meeting or had the capacity to meet
some of the long term care needs.
Scenario:
Current
State
Traditional -
New Site
Small House -
New Site
Small House -
New Site
Number of SNF Beds 45 40 30 40
Number of AL Units - - 10 -
Project costs (Uses) - 18,461 23,864 23,864
Cash Flow:
Stabilized year of 2020:
Operating revenues 4,373$ 3,894$ 3,327$ 3,894$
Operating expenses (8,827) (6,723) (5,178) (5,820)
Loss from Operations (4,454) (2,829) (1,851) (1,959)
Debt service - (795) (1,203) (1,203)
Routine capital (150) (40) (40) (40)
Net Cash Flow (4,604) (3,664) (3,094) (3,202)