CUMBERLAND - Allegany County wants to get out of the nursing home business.
The county commissioners on Thursday approved advertising for the "acquisition or lease of all assets" of the Allegany County Nursing Home and Rehabilitation Center on Furnace Street. Officials didn't release a possible sale price.
The perceived value could be slightly increased by the Maryland Nursing Home Guide's 2007 Maryland Nursing Home Family Survey, in which Allegany County nursing homes overall scored higher than the state average.
Most Maryland counties that once operated nursing homes have altered the way they do business by either turning them over to a nonprofit organization or selling the entity altogether, said County Attorney Bill Rudd. Only Allegany, Frederick and Harford counties still operate nursing homes.
Conversations among county officials have been going on "forever," Rudd said, but were expedited in September when Jerry Frantz, the county's director of finance, illustrated to the commission "meaty" annual operating losses.
The facility was $1,082,598 short of breaking even in 2005 and $747,657 short in 2007, Frantz said.
Al Konrad, executive director of the home, said that "every cost that could be cut has been cut" and praised the center's 160 employees, which includes union representation.
He said fixed annual costs of $450,000 into a retirement fund for employees and $250,000 for post-retirement health care for former employees as a major sticking point in why the facility couldn't break even. In addition, Konrad said, some families aren't paying their bills.
County officials said Thursday a sale is far from a done deal. Interest must be expressed in writing by April 1 and all applicants will be required to enter into a confidentiality agreement. Those applicants will have access to financial and performance records on a "virtual room" on the Internet, officials said.
Written inquiries should be directed to Healthcare Financial Solutions LLC, in c/o Marc Feldman, Principal, 9141 Reisterstown Road #9, Owings Mills, MD 21117.
After the initial interest, applicants will be required to submit a letter of intent showing future plans for the facility and include a $100,000 deposit, refundable in the event the applicant is not selected. Otherwise, the deposit would be applied toward the purchase price.
"Even though we're doing this, this does not lock the commissioners into" selling, said Commissioner Dale Lewis.
Commission President Jim Stakem said advertising for proposals is "just the beginning of the process" and there will be "a lot more discussion" as time passes.
Lewis suggested forming an advisory committee to review applications. That committee could include the commissioners, union representatives and representatives from the Allegany County Chamber of Commerce, he said.
Contact Kevin Spradlin at kspradlin@times-news.com.
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February 8, 2008





