For several years Keiro NW has experienced financial losses. After examining several alternatives, the Board of Directors has made the difficult decision to phase out several of its programs, including the rehab and skilled nursing facility. This action is necessary to allow the best possibility of building a sustainable business and ensure continued community control.
We are very saddened by the decision to close KRCC. The Japanese American community should be so proud of what was built years ago by the Magnificent 7 and the thousands of people we have served over our 40 year history. As we learned at the Town Hall, the Board of Directors has plans underway to research sustainability options for the remaining programs. The effort, led by Tomio, is looking to raise $5M in the next 60 Days to evaluate and assess how to use the 1601 E. Yesler property as well as cover the operational shortfalls of the remaining programs. To be clear, this money will not save Keiro Rehab & Care Center (the nursing home). The closure will proceed as planned. If you would like to contribute to this effort, please contact GivingToKNW@keironw.org.
Unfortunately we were unable to hear all of the questions during our time together at the community town hall. We are compiling these questions and will have answers available as soon as possible. If you have any other questions during this time, please contact AskKNW@keironw.org
What does this all mean?
After reflecting on all possible alternatives, Keiro NW Board of Directors has made the difficult decision to phase out several of its programs over the next twelve months. The action was made necessary because of unsustainable financial losses that date back to 2012.
What programs are affected by this decision?
- Over the next 6 months, Keiro NW will phase out its skilled nursing and rehab program, affecting approximately 100 residents who are currently receiving long-term skilled nursing services.
- Keiro NW’s Home Care program will also end, affecting 13 clients.
- Keiro NW’s Continuing Education program will phase out through the end of the year, affecting approximately 700 participants.
- Keiro NW’s Catering program will close sometime this summer.
- Keiro NW’s Transportation program will close mid-summer, impacting the 1,300 trips we make each month.
- Keiro NW’s support staff, corporate staff, and Senior Leadership will also phase out through the end of this year, impacting our annual events, outreach, and philanthropy.
What will happen to the people served by those programs?
All of those affected by the program phase outs will be given time and support in finding alternative arrangements. Keiro NW is working closely with the State of Washington to ensure a safe and compassionate transition of all long term residents.
What happens to employees?
Employees affected by these changes will have access to professional outplacement services to prepare them for new employment opportunities. In addition, Keiro is working with other local facilities to hold a job fair to also provide greater opportunities for our employees to easily transition during this time. Our employees are the heart and soul of Keiro. There are no words that can adequately express our gratitude for their services and devotion to our clients and residents.
What will happen to the other programs?
The organization will continue to serve the community through its assisted living facility, Nikkei Manor.
How did Keiro finances get to this point?
The financial stability of Keiro NW has always been fragile, but it experienced its most significant financial challenges over the last decade, triggered by the Medicaid Shortfall of 2008-2010. Most challenging has been the continued operation of the Rehabilitation and Care Center due to the following factors:
- Federal actions have markedly diminished the availability and predictability of Medicaid resources for skilled nursing, and is slated for another set of reductions and more stringent eligibility guidelines this October
- Keiro NW has had difficulty absorbing the financial impacts of regulatory requirements such as the 24/7 RN Coverage Requirement and Seattle’s 40 Hour minimum wage requirement
- In an effort to address its financial condition in 2014, Keiro NW made a number of costly investments that did not attain their original financial expectations.
- Deferred maintenance at the Rehabilitation and Care center and Nikkei Manor has resulted in the need for several unanticipated but costly repairs
What will happen to the Nikkei Manor (Assisted Living) and Kokoro Kai (Adult Day Programing)?
This has been a difficult period of change for KNW, the KNW Board reaffirms that this decision was made with much difficultly. KNW is committed to its foundational legacy to provide services to our aging family members who are in need of culturally sensitive services. These two programs will remain active.
What if I have further questions?
A Transition Desk has been established and available for staff daily from 9:30 AM to 6:30 PM in the KRCC reception area. A Town Hall occurred on May 14th from 6-8pm at the Stroum Jewish Community Center in Mercer Island.
If you have additional questions, please continue to email them to AskKNW@keironw.org.