County commissioners have taken the first steps toward ending their subsidy of the Evergreen skilled nursing home in Olathe.
The move means the facility, 11875 South Sunset Dr., will be vacated and its 60 current residents moved to a new building or transferred to other nursing homes by Aug. 1, 2026.
County has contracted with Evergreen since 2007
The commission earlier this month approved an early termination agreement with Evergreen Living Innovations, the non-profit entity that has managed Evergreen Community since 2007.
The decision marks an end of an era when Johnson County, like many others across the country, sought to provide services for the needy through bygone “poor farms” and county homes, said Commissioner Janeé Hanzlick.
The nursing facility is located within the county’s Health Services Building.
Evergreen Living Innovations has been running it for the county for $800,000 a year under a contract that was to have ended in 2027.
There are growing issues with the facility
The building has had structural issues for years and is rapidly deteriorating, according to a staff report.
Moreover, the nursing facility is mostly semi-private rooms and lacks private rooms that are now preferred by most people entering care, the report said.
The building conditions were such that the county stopped making major investments in improvements a few years ago, though maintenance work has continued on items like the roof.
County staff concluded that demolition and rebuilding would be the most cost-effective solution.
To prepare for that and the eventual displacement of the residents, county officials began working on an agreement to eventually sever its yearly subsidy while providing some funds for a new location.
County will pay up to $24M to phase out Evergreen
Under the agreement the commission recently approved, the county would pay a maximum $23.8 million to end its involvement in the facility.
That covers the $3.8 million obligation on the remainder of the management contract. The rest would support Evergreen’s efforts to relocate and become self-sufficient.
The county’s payment comes with some restrictions and a timeline:
- The first amount is $10 million to be paid to Evergreen Living Innovations March 1.
- Another $13.8 million would be placed in escrow and would be paid out only if the non-profit gets financing and a building permit for construction or renovation of a new location by Aug. 31, 2024.
- If Evergreen doesn’t meet the deadline, it will be required to submit a plan to wind down its operations and to place residents at other Johnson County nursing homes.
- The county would pay $4 million of the escrowed funds for that purpose, and no more money would be paid to Evergreen.
There is no requirement that Evergreen’s new facility be located in Johnson County.
Whether or not Evergreen is successful in finding a new location, the county’s annual subsidy payments will end and the current facility is to be vacated in three and a half years.
County commission voted 5-2 in favor of the plan
Commissioners who voted for it said it was the best way for the county to move on from a past in which it was the norm to provide care for those with few resources.
“This was a mission the county may have had for twenty-plus years,” said Chairman Mike Kelly. “It used to be a staple part of county government but is no longer. This is not the way we best can serve.”
But commissioners Charlotte O’Hara and Michael Ashcraft, who both voted against the agreement, expressed concern that there was no requirement that Evergreen continue to take Medicaid patients, although a company official at the meeting said that is a part of his company’s mission that is not expected to change.
“I have no words for how disappointed I am that the county is entering into this type of contract,” O’Hara said.
She also faulted the staff for the building’s state of disrepair.
A few of the six people who offered public comments also were critical.
Zish Margulies, the CEO of Recover-Care Healthcare of Kansas City, Kan., said the 60 residents at Evergreen could have been moved to other quality facilities for a much more reasonable cost.
There are currently 900 empty beds in Johnson County nursing facilities, he said.
Roxie Hammill is a freelance journalist who reports frequently for the Post and other Kansas City area publications. You can reach her at roxieham@gmail.com.
