The Price of Providing Life Support for Greenwich's Nathaniel Witherell
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Like hospitals, the nursing home business has survived the pressure of tight margins and insurance reimbursement gaps through massive consolidation. For example, Greenwich Hospital is now a pillar of the Yale New Haven Network, leveraging the network's massive purchasing power and shared administrative costs to remain viable.
Nathaniel Witherell remains an island. In Connecticut, there are approximately 195 nursing facilities across the state, the vast majority are private for-profit (80%) or private non-profit (20%). The outlier is The Nathaniel Witherell, located on a 24-acre campus at 70 Parsonage Road—the only facility in the state run by a municipality, owned and operated by the Town of Greenwich since 1903. By remaining a standalone municipal entity, Witherell lacks the economies of scale that its competitors use to survive; it cannot split the costs of specialized staffing, medical equipment, or insurance across dozens of facilities.
The Fiscal Reality
The Town Budget reveals a troubling trajectory here. Witherell posted an operating loss of -$3.8 million in FY 2024-2025. While projections initially suggested a narrowed loss of -$2.4 million in FY 2025-2026, those "rosy" estimates were effectively dismantled during the budget hearing on Tuesday, Feb 24. Witherell is currently grappling with a collapse in occupancy (census). It has capacity of 202 beds. In October 2025, 172 beds were filled, in December-January only 156 beds were filled, and today, the number is 151 beds—the lowest in recent history. In response, the Witherell board announced an immediate 16-month turnaround plan.
Bottom Line for Taxpayers
At the current "run rate," the annualized losses have ballooned to -$4.8 million. Based on Tuesday's update, the -$5.3 million loss already budgeted for FY 2026-2027 will likely be breached. When you factor in an additional $1 million of capital needed for building investments and other in-kind transfers, the total subsidy could represent 2% of your local taxes.
Between the Lines: The question for our community is simple but painful: how long, and at what cost, are Greenwich taxpayers willing to support this cherished town facility.