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TO :         CITIZENS OF FULTON COUNTY
                 RESIDENTS AND STAFF OF FULTON COUNTY RHCF
                 ALL INTERESTED PARTIES

FROM:   GREGORY T. FAGAN, CHAIRMAN OF THE BOARD

DATE :    30 MARCH 2010

RE :         INITIAL PROPOSAL EVALUATION REPORT

In August 2009, the Board of Supervisors authorized seeking proposals from qualified health
care organizations interested in purchasing and operating the Fulton County Residential Health
Care Facility and/or the County’s certified home health agency, the Nursing Service. The
Board’s stated goal is to explore private and not-for-profit options for continued operation of the nursing home and to compare those options with the existing county-owned structure to
determine what is in the best interest of the community.

Proposals demonstrating interest in purchasing the RHCF were received from Centers for
Specialty Care, Bronx, NY; Leatherstocking Healthcare, Herkimer, NY; Nathan Littauer
Hospital and Nursing Home, Gloversville, NY and Pharney Group, Tarrytown, NY. Mountain
Valley Hospice, Gloversville, NY, submitted the only proposal seeking to purchase the Nursing
Service’s operating certificate. The Center for Governmental Research (CGR), the non-profit
research organization coordinating the RFP, has completed an initial analysis of the proposals
entitled “Evaluation Report of Proposals in Response to RFP”. The report was presented to the
Board of Supervisors Health Services Steering Committee at its meeting on 30 March 2010. I
expect that the Committee will examine the report’s contents over the next several weeks and
will request more detailed information from proposers as the process begins in earnest.

The Board of Supervisors is working diligently to answer the question “Is there a new,
innovative private sector approach that provides equal or better health care services at a lower
cost to taxpayers?” This initial report by CGR provides the first glimpse of how private or nonprofit nursing homes would operate the RHCF and how each would address the health care needs of our local community. This first glimpse is the beginning of the decision-making process and much more detailed information and negotiations will be exchanged in the weeks and months ahead. Everyone’s goal should be to work diligently to ensure that the quality and quantity of health care is maintained for local residents and their families. I encourage individuals and organizations throughout our area to follow the process intently and to keep an open mind about all options.

Although the CGR Report contains a thorough summary of the proposals, it is understandable that some persons may still want to read copies of the actual proposals that were submitted. In order to provide public access, a binder containing the CGR evaluation report and copies of the proposals will be placed on file in the Reference section of the Gloversville Public Library and the Johnstown Public Library for inspection. Copies may also be obtained at a cost of 25 cents per page by contacting the Board of Supervisors Office on or after March 31, 2010. Proposal copies will be complete, except that the specific purchase price/terms offered by each proposer will have been deleted and each proposer’s financial statements will not be included. This information will likely be made public in later stages of the RFP process.