Roughly 250 people work at the Loretto Utica Center. 223 residents live there. The facility's sister company, which owns the building, voluntarily filed bankruptcy in December.

In July, creditors that are owed money by Loretto will file proofs of their claims, including one entity, G.E. Capital Healthcare Financial Services, owed $21 million by Loretto. Michelle Synakowski took over the reigns here after the former executive director left in March. She says a majority of nursing homes struggle to pay their bills.

"So if you look at the staffing costs of 1983 as opposed to staffing costs in 2006, there's a significant difference, so we're being reimbursed on costs from 1983 and are not able to meet the expenses in the year 2006." Says Synakowski.

Layoffs over the next 2 weeks at Loretto will involve about 10% of the workforce. But Synakowski says most will be offered new positions in the facility, with only about 4 being left jobless.

According to Synakowski: “Some of the positions that were affected of employees that weren't able to be moved throughout the facility were middle management. Positions that don't directly affect patient care.”

The lawyer handling Loretto Utica Property's bankruptcy says both they and the Utica facility will emerge in some form. Loretto Utica Center's Executive Director agrees, the facility will continue to care for people in the heart of Utica.

"I do feel that Loretto Utica Center is stable at this point in time. As long as we can maintain sufficient cash flow and look at our revenue vs. expenses and make sure that we're diligent in our efforts I really don't think there's any danger the center's going to close." Says Synakowski.

The attorney handling this bankruptcy says Loretto Utica Properties, which owns the Loretto Utica Center Building, could emerge from bankruptcy with a new owner, but he expects any transition would be seamless and not impact patient care.