Lutheran Social Services of Upstate New York announced it will close its nursing home and rehabilitation program in Jamestown by early next year. Forty-nine residents and 106 positions will be impacted.

“It is with great sadness that the Lutheran Board of Directors and administration have decided that it is necessary to close this great community resource,” Tom Holt, Lutheran president and CEO, said in a statement released Wednesday morning.

“Lutheran is currently working with the New York State Department of Health to ensure that this transition is as smooth as possible,” he continued. “Our top priority is to work with every resident, their families and our valued employees, to secure new housing options, care and job placement.”

Employees impacted will include full- and part-timers as well as those considered per diem, the organization announced.

The closure was filed with the state Department of Health and includes the permanent closure of Warner Place Adult Day Care, a program discontinued during the COVID-19 pandemic. Lutheran’s Home and Rehabilitation Program capacity is 148 beds.

The closure date is Jan. 2, 2024, or earlier — pending the discharge date of its last resident. In a news release, Lutheran said the decision does not impact current housing and care at either Hultquist Place Assisted Living or Edgewood Communities.

As stated on its website, Lutheran was founded in 1886 as the G.A. Home for Children to serve the children of Swedish immigrants who lost their lives in the trek to America. As the years passed and the needs of the community changed, today Lutheran serves both seniors and youth with special needs.

Since 2019, Lutheran said it has been analyzing the data trends affecting all of Chautauqua County’s senior living programs.

Statistics indicate that the total number of certified skilled nursing beds in Chautauqua County far exceed the number of residents. Other trends, Lutheran said, include federal and state regulatory burdens, decreasing Medicaid reimbursement rates, escalating delivery costs, a shrinking skilled health care workforce, and the current incentives to have elders and those requiring medical rehabilitation to remain at home for care.

Lutheran states that local skilled nursing facilities have been running at an average 65% occupancy rate. The occupancy rate, the organization said, is significantly lower than the optimum 90-95% occupancy rate that is needed to maintain financial sustainability.

Four years ago, Lutheran said it was operating at the occupancy rate; however, the rate began to decline prior to the COVID pandemic and “have only continued to compound and worsen,” Lutheran said.

In-person meetings will be scheduled with residents and families to explain the forthcoming process and provide opportunities for questions and guidance. Lutheran said it will “coordinate, assist and ensure” that arrangements are made for residents who wish to receive services from a nursing home of their choosing.

“We know this decision is coming as a surprise to many but we are dealing with harsh industry realities,” Holt said. “Hard decisions have to be made to keep the other county-wide facilities viable financially. There just aren’t enough people, both residents and staff, to keep all the facilities open, providing optimum levels of care. We can’t be three years down the road, not paying our bills and be financially insoluble where it negatively impacts the other programs under the Lutheran senior housing umbrella.”

Lutheran said it will also assist its affected employees according to requirements outlined by the Department of Labor Worker Adjustment and Retraining Notification, connecting with local Workforce Investment Board resources, assisting with placement at surrounding health care facilities, and supporting outreach to local employers to include hosting on-site job fair events.

Building and property disposition following the discharge of all residents has not yet been determined. At the time of closure, the facility will be secured, all fire and security systems will remain operable, and staff will be assigned to round daily to ensure the integrity of the building, its contents and property.

“Lutheran’s longstanding mission is to offer care that supports an individual’s journey through life with compassion, dignity, and respect,” said Terry Turner, Lutheran board chairwoman. “In order to fulfill this, our pathway now includes how we evolve and innovate for the well being of our county-wide senior population, right sizing a financially-strained industry, and creating a stronger long-term care system. We will be with our residents and employees every step of the way.”