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M C K A Y
WALTHCARE & REHA51UTATION H aT
Senior Rural Healthcare Project by McKay Healthcare
1. Introduction
Since 1938, McKay Healthcare has been caring for seniors close to home. McKay Healthcare,
currently operates a 42-bed skilled nursing and long-term care facility on three acres out of 23
acres of property that it owns'. Since the mid-1980s, McKay Healthcare has been exclusively
providing skilled and long-term term care services to residents primarily from the central
Washington area. Over the past few years, McKay Healthcare's five elected commissioners have
been developing plans for transforming the delivery of healthcare for seniors in Grant County,
Washington.
2. Project Scope and Purpose
This will be the first of its kind continuing care retirement community (CCRC) in Central
Washington. CCRC is a long-term care model that allows residents to safely age in place within
the community as they progress from independent living, to assisted living or memory care and
then to a skilled nursing facility for rehab or other longer term nursing care. CCRCs foster a
strong sense of community and social connection, reducing isolation and promoting mental
well-being which supports better quality of life.
Currently, there are no licensed assisted living or memory care facilities within a CCRC complex
in central Washington. CCRC services are found only in Seattle and Spokane, Washington
metropolitan areas2. Phase 1 of the project includes construction of a 16 unit memory care and 16
unit assisted living facility with amenities appropriate for the senior community. A new AL wing
with memory care and assisted living will improve access to meet the growing demand for
healthcare care services for an aging population.
3. CCRCs Promote Better Care for the Elderly at Lower Costs
• Independent Living. Independent living options help address social determinates of health
by offering seniors access to better diets, social activities, health monitoring and other in -
home services that allow them to remain healthier and independent for longer which
reduces the need to transfer to higher levels of care.
• Memory Care. The growth in forms of dementia is outpacing available space in care
facilities. Individuals with forms of dementia in Adult Family Homes go untreated and
have lower over-all quality of life factors and shorter life spans. They would be better
served and at lower cost within a local memory care facility with controlled access where
greater focus can be paid to memory related therapies and environmental controls.
' Public Hospital District No; 4 of Grant County, Washington is the legal name for McKay Healthcare.
2 See the attached slide presentation.
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Po BOA( 819 a SOAP CAKE, WA 98851 * (509) 246-1111 * W1NW,MCKAYHEALTHCARE.ORG
Assisted Living. Assisted living is a vital long-term care option in rural areas because it
helps older adults remain in their communities while receiving the support they need. By
providing assistance with daily activities, medication management, and regular monitoring
these service reduce hospital admissions while assisting with chronic disease management.
This project will strengthen the collaboration between existing rural healthcare hospitals and
clinics by keeping residents local and maintaining continuity with existing healthcare providers.
4. Feasibility- Unmet Demand in Grant County
Between 2010 and 2022, the 65+ age group increased the most in Grant County, increasing by
41.3%. The 75+ age group increased by 35% between 2010 through 2024. This data demonstrates
the need for new facilities to meet the growing demand for healthcare care services for the elderly.
The Alzheimer's Foundation reports 120,000 Washington cases in 2020. By 2025, that number is
expected to grow to 140,000 — an increase of 16.7%. An estimated 10.6% of Grant County's 65+
population has Alzheimer's disease, according to new estimates , released in 2023 by the
Alzheimer's Association. That compares to 10.2% statewide, and ranks #5 of the 39 counties in
Washington included in the data. Locally, it means about 1500 people have Alzheimer's in Grant
County. There are not enough facilities currently to meet this demand.
5. McKay Healthcare is committed to construction ready plans and specifications by
December 2025:
A. Completed planning studies, permit studies, architecture/engineering costs: $153001000
B. Permit studies, kitchen design and FF& E studies (estimate): $2105000
C. Kitchen Renovation (to be funded in 2026) $700,1000
Total investment: $2,21010003
6. Total Phase 1 Project Cost Estimate
This project includes approximately 40,304 square feet of community and private living spaces
with associated office and amenities; including a community clubhouse hosting amenities for the
assisted living and Phase 2 communities, including a bistro, catering kitchen, salon, multipurpose
room, meeting rooms, art classroom, and fitness or childcare space and associated landscape and
memory care amenities and features. MACC Estimating Group, LLC was retained to develop
construction cost estimates. Based on design development and 40% construction documents,
MACC estimates the Phase 1 construction cost as follows:
Phase 1 MC/AL wing: $22,314,938
Community Clubhouse: $6,032 884
Soft costs (permit studies), 5% construction contingency, sales tax, FF&E $5129804
Total cost: $33,646,506
3 All dollar values in this paper are estimates only and subject to change.
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PO BOX 819 SOAP LAKE, CIA 9 851 � (509) 246� 1111 � WWW.MCKAYREALTHCARE-ORG
7. Rural Workforce Development
McKay Healthcare currently employs 57 FTEs in the skilled nursing facility (SNF). It is currently
one of the largest employers in the small community of 1700 providing sustainable family wages
and benefits. Phase 1 will add 28.7 FTEs bringing the total to over 85 FTEs for the SNF, AL
and MC. This will have a very critical impact to a community where the median household
income (MHI) is $37,767 which is 46.6% of the state MHI which is $78,874. This project alone
will support an annual payroll of $1,801,000.
Located adjacent to the local Soap Lake High School, McKay Healthcare will have the opportunity
to offer workplace training to recent graduates. In addition, 160 construction jobs will be created
which pay prevailing wages. Moreover, by expanding the campus in phases, job growth for
construction workers maybe sustainable for many years to come as the project progresses through
the 5 phases of development. The Phase 1 sales tax benefits alone are estimated at $2,400,000.
8. Phase 2 - Independent living begins after construction of Phase 1
Phase 2 includes 44 privately financed duplexes for independent living. A copy of the site plan is
attached. Based on previous studies by GSI, LLC, Phase 2 offers an additional investment of
roughly $26 million in the local area. As a result of the CCRC, senior residents will stay locally,
rather than move away, while others will move to the local area where these services can be found.
Additionally, based on some earlier work performed by GSI, LLC, total employment impact is
projected to include 6 new FTEs and 100 construction workers.
Without these facilities, families will move out of the area in advance of their need to be closer to
areas that can offer these levels of care and services. This project will strengthen the
collaboration between existing rural healthcare hospitals and clinics by keeping residents local
and maintaining continuity with existing healthcare providers.
9. Grant Funding is Critical Because of the Areas Low Income Demographics
The 3 small rural communities within the hospital district are Soap Lake, Coulee City, and Wilson
Creek. Similar to the demographics of Soap Lake discussed above, the 2020 Census showed Coulee
City, Washington, had a population of 549, a median age of 65.8 years, MHI of $49,13 5 and 16.6 % poverty
rate. Wilson Creek also has a MHI of $55,000 and a poverty rate of 17.5%. The business plan for Phase 1
wing reflects this demographic by providing approximately 30% of the room space for low income /
Medicaid residents. (The SNF currently provides care to over 75% Medicaid residents). This demographic
data shows the highly rural nature of the population and the need for state and federal assistance.
10. Contact Information Audra Gutierrez-Ritari, Admin./Superintendent
Cliff Sears, Project Manager McKay Healthcare and Rehabilitation Center
General Counsel, Public Hospital District audra ,mckayhealthcare.org
No. 4 of Grant County (509) 246-803 8
csears a,nwi.net
(509) 398-7234
PO BOX 819 • SOAP LAKE, WA 98851 . (509) 246-1111 * WWW.MCKAYNE,ALTNCARE.ORG