Nursing Home $1.3M Question
March 31, 2026 - Stephenson County’s 2026 adopted budget is raising new questions about last year’s decision to sell the county-owned nursing home—particularly after updated figures show the county may now be absorbing nearly $1.3 million in costs tied to the operation.
The facility was sold in 2025 after county officials stated it was operating at a loss and placing a burden on taxpayers. However, a review of county financial data from the years leading up to the sale suggests a more complex financial picture.
Financial Performance Before the Sale
According to county records, the nursing home generated a surplus in 2023:
2023 Revenue: $6,280,723
2023 Expenses: $5,499,413
Net: +$781,310
The following year, the county projected the facility would operate at break-even:
2024 Budgeted Revenue: $6,475,186
2024 Budgeted Expenses: $6,475,186
These figures indicate the operation was not consistently operating at a loss prior to the sale.
Post-Sale Budget Shows Deficit
The 2026 adopted budget presents a stark contrast:
2026 Revenue: $500,200
2026 Expenses: $1,775,100
Projected Deficit: -$1,274,900
With the facility no longer under county ownership, revenue tied to operations has largely disappeared. However, several categories of spending remain.
Ongoing Costs After the Sale
Despite the transfer of ownership, the county budget still reflects significant expenditures associated with the nursing home, including:
Agency Nursing: $632,789
Therapy Services: $88,871
Food Services: $408,270
Medical Supplies and Support Costs
Utilities and maintenance-related expenses
The presence of these costs raises questions about what obligations the county retained following the sale.
Key Questions Moving Forward
The discrepancy between pre-sale performance and post-sale projections has led to several key questions:
Why did the facility show a surplus in 2023 if it was characterized as a financial loss?
What specific costs remained with the county after the sale?
Why are operational-style expenses still present in the 2026 budget?
How was the final sale structured, and what liabilities were retained?
Impact on Taxpayers
The projected $1.27 million deficit represents a significant shift in financial responsibility. Prior to the sale, the facility generated revenue sufficient to offset or exceed its costs. Under the current structure, taxpayers may now be responsible for covering the remaining gap.
A Shift in Financial Position
The transition appears to mark a broader change in how the county engages with the nursing home:
Before: County-owned, revenue-generating operation
After: Limited revenue, ongoing costs, taxpayer-supported deficit
Conclusion
The county’s decision to sell the nursing home was presented as a financial necessity. However, the most recent budget data suggests the long-term impact may be more complicated than originally described.
If the goal was to eliminate losses, the current numbers raise a fundamental concern:
Why are taxpayers now covering even more?
From Gladys’ Window
Gladys doesn’t read budgets line by line—but she knows when something doesn’t add up.
She remembers being told the nursing home was a problem. Losing money. Too expensive to keep. Something the county had to get out from under.
Now she’s hearing something different.
The county sold it.
The revenue is gone.
But the bills didn’t go away.
So she asks the same question everyone else is starting to ask:
If we sold the nursing home… why are we still paying for it?
And maybe more importantly—
What else are we being told that doesn’t quite match the numbers?