Published: May 08, 2008 11:39 am         

For sale

Time for county to get out of the nursing home business

Allegany County probably could not have picked a better time to weigh offers to purchase its nursing home. Six potential owners have stepped forward.

The county is one of just three subdivisions in Maryland that own and operate a nursing home. The others are Frederick and Harford counties.

Here, the nursing home has been a losing proposition in recent years. The Furnace Street facility was $1,082,598 in the red last year, and $747,657 short the year before that.

Al Konrad, executive director of the nursing home, has told the county commissioners that every cost he can think of has been cut. But fixed costs such as a $450,000 annual payment into a retirement fund for employees and $250,000 per year for post-retirement health care are draining the facility's revenue. On top of that, some families have been unable to pay nursing home bills, adding to the facility's financial problems.

The county is hoping to make a decision on whether to sell by June 30. If it does, it would have a favorable impact on the county's fiscal 2009 budget.

Evaluating the six offers will be done by a panel appointed by the commissioners. The group is expected to include one representative each from the finance department, the county administrator's office and the legal department.

We encourage to the county to also consider including a representative from the medical community or perhaps from the health department.

If a suitable buyer is identified, the county should move out of the nursing home business and place the facility in capable private-sector hands.