RITZVILLE — Residents of the East Adams Hospital District are being invited to a meeting to discuss the future of the East Adams Care Center, the community’s extended care facility. The meeting is scheduled for 5:15 p.m. Thursday at American Legion Post No. 51, 106 West Broadway Ave.

The hospital has owned the 50-bed extended care facility since 2014, the result of a donation from a private company. But the facility hasn’t been able to attract enough residents to enable it to turn a profit, said hospital chief executive officer Gary Bostrom. The care center needs about 32 residents to break even, he said, and it’s been averaging 24.

On paper, the facility finished 2015 with $400,000, Bostrom said, but that took into account the value of the property, estimated at about $1 million. In the first nine months of 2016, the facility had lost more than $800,000, he said.

Those are losses that the district can’t sustain, he said, and hospital district officials have been looking for a solution.

Hospital officials proposed changing the facility’s classification, converting it from an extended care facility to part of the hospital. That would change reimbursement rules, which would generate more revenue, he said.

But that proposal has stalled. When the care center was inspected, inspectors found “two major things and a lot of other things.” The big-ticket items were upgrades to the electrical system and the heating-cooling system, Bostrom said. The estimated cost is $2 million to $3 million.

The hospital district is in the final stages of a major remodel of East Adams Rural Hospital. “We can’t really afford to fund a $3 million project.”

In addition, the proposal would have to be approved by federal and state regulators, Bostrom said. It has received preliminary approval – but not final approval – from the federal government. State approval is still pending as well.

Approval is not assured, Bostrom said, due to the regulatory structure. Hospital officials have enlisted the help the state’s Congressional district, but the proposal is still stalled. “We have pulled out all the stops trying to see if there’s anything they can do.” So far, the answer has been no. “They have to go with the regulations.”

Because of the pending conversion proposal the facility hasn’t accepted new residents for a few months. Closure is an option, he said, but in that case it would be necessary to find homes for the current residents. “It’s a difficult decision.” Hospital officials want to know what district patrons think, and where they want to go from here, Bostrom said.

Cheryl Schweizer can be reached via email at [email protected].