Westmoreland County hands out grants to Excela, nonprofits

Excela Health received a $5 million grant from Westmoreland County Thursday to help the hospital chain recover revenue lost during the coronavirus pandemic.

County commissioners also awarded 77 nonprofit agencies grants totalling nearly $1.2 million to help pay for expenses related to the pandemic.

Commissioners conceded the surprise grant to Excela came at the expense of small businesses and local nonprofits, which were expected to receive larger allocations from the $31.5 million funneled to the county from the state and federal governments.

“We would be in worse shape today if Excela did not step up and do what they did for us. We would be lost. So, I thank them every day to keep the No. 1 employer in the county, to keep people working, staying in this county. That is our goal,” said Commissioner Sean Kertes.

Originally, the county’s grant program was to award $10 million each to small businesses, nonprofits and local governments but, over the last several months, commissioners reduced the size of the grant programs after receiving fewer applications than anticipated.

The grant to Excela came outside of the application process for small businesses and nonprofits.

“We must also consider the economic impact of supporting a larger institution such as Excela. Excela Health has been part of Westmoreland County’s nonprofit community for over 100 years and it is poised to continue as a community partner for the next 100 years,” said Commissioner Doug Chew.

Commissioners praised Excela’s involvement in helping the county address local needs during the coronavirus pandemic and said, as the county’s largest employer, the grant will help the hospital chain remain open and cover losses.

“In other words, $5 million in CARES funding keeps a $580 million economic engine humming in Latrobe, Greensburg, Mt. Pleasant, North Huntingdon and many other places,” Chew said.

Excela Chief Executive Officer John Spohn said the grant will pay for the purchase of personal protection equipment, maintain operations of the Excela Frye Farm Road coronavirus testing center and ensure adequate staffing.

“The financial impact of the covid-19 crisis has impacted our operations like many other businesses across the county. We anticipate significant ongoing additional costs and are grateful for the commissioners’ recognition of the challenges we face as we serve the residents of Westmoreland County during these difficult times,” Spohn said in an emailed statement.

Commissioner Gina Cerilli voted against the Excela grant.

She praised Excela for its role in the county’s response to the pandemic and suggested the hospital group has already received government funding. Cerilli said the money given to Excela should have been distributed to small businesses and nonprofits.

“We said we were going to do two rounds for small businesses and nonprofits and now we are not doing that. Twenty-five thousand dollars for a small business can keep their doors open and, unfortunately, there are going to be a lot of small business that are going to have to close their doors because of the $5 million we are giving to Excela,” Cerilli said.

Commissioners last month awarded more than 260 grants totaling about $4.3 million to local small businesses. Grants awarded Thursday went to local theaters, libraries and public service agencies.

Meghan McCandless, county finance director, said commissioners allocated about $23.6 million of the available grant funds, including $8 million that was set aside for hazard pay and overtime to front-line county workers, such as nurses at county-owned Westmoreland Manor nursing home, guards at the county jail and 911 employees.

The county received 375 grant applications from small businesses while 125 nonprofits submitted claims for awards capped at $25,000. Officials said the list of the nonprofit recipients will be posted on the county’s website.

Commissioners said a second round of grants for small businesses, in which up to $2 million can be awarded, will be announced later this year.