CUMBERLAND — As negotiations continue to move forward resulting in the likely sale of the Allegany County Nursing Home and Rehabilitation Center, the county commissioners are still dealing with last year’s bad debt.

The commissioners are expected to write off bad debt in the amount of $596,034.52 on Thursday during their public meeting, scheduled for 11 a.m. at the County Office Complex. Certified Public Accountant Jason Bennett, of the county’s Department of Finance, said the overwhelming majority — more than 70 percent — of the bad debt is due to people’s inability to pay their bills.

Another 24 percent is categorized as Medicare Part A or Medicaid bad debt, Bennett said, but much of that is bad debt, too. That’s because many of the Furnace Street facility residents can’t afford to pay the premiums, thus preventing the facility from collecting payments from Medicare or Medicaid.

The facility has averaged $207,000 in bad debt being written off over the last 10 years, Bennett said.

The timeline received a boost recently when union membership, represented by American Federation of State, County and Municipal Employees Local 1521, voted to approve renegotiating the current collective bargaining agreement.

Any changes negotiated would go into effect only if a sale takes place, said acting County Administrator David Eberly. A meeting with union representatives could take place as early as next week, Eberly said.

The commissioners have spoken about their sincerity in protecting employees’ jobs and accrued benefits. Any of the three final potential buyers of the center would have to ensure the new owners would protect the employees and the residents, the commissioners said.

The final three candidates, listed alphabetically, are Allegany Healthcare Group LLC of Cumberland; Complete Health Care Resources of Dresher, Pa.; and North Bay Health Associates LLC of Miami Beach, Fla. Complete Health Care Resources currently manages the day-to-day operations at the nursing home.

An annual budget shortfall is a primary reason the commissioners announced in February they were putting the nursing home, with more than 140 residents and 160 employees, including some union workers, on the market. The home was $640,073 in the red in 2007 and more than $1 million in 2005. Figures for fiscal 2008, which ended June 30, are not yet available, Bennett said.

County Attorney Bill Rudd has noted that only two other Maryland counties — Harford and Frederick — continue to operate nursing homes. Most previously in the business have either sold them or turned them over to a nonprofit organization, he said.

In other business, the commissioners are expected to approve a one-year contract between Allegany County Transit and Frostburg State University to provide shuttle services on campus. The contract is being shortened from its typical two-year term of service, said Transit Chief Jim Stafford.

Still, it’s going to cost FSU $125,000 for this fiscal year. Bennett said the previous contract cost the school $92,000, which means a 35.8 percent increase for this year. The cost is absorbed by FSU students’ fees.

FSU spokeswoman Liz Medcalf said in an e-mail the student transportation fee was increased last year to $22 each academic year from $20. Those figures were provided by David Rose, FSU’s vice president for administration and finance.

“And as you might imagine, fuel prices account for the majority of the increase in the payment to the county,” she said.

The commissioners also could introduce legislation to reduce the Homestead Tax Credit to 7 percent from 10 percent. The tax credit puts a cap on property assessment increases.

Contact Kevin Spradlin at kspradlin@times-news.com.