Kevin Spradlin
Cumberland Times-News
May 07, 2008 11:58 am
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CUMBERLAND - Five companies, including three in Allegany County, have submitted a $100,000 de-posit or a letter of credit in order to stay in the running to purchase the Allegany County Nursing Home and Rehabilitation Center.
Acting County Administrator David Eberly said Monday those five companies responded by the May 1 deadline. The list was narrowed down from 13 organizations a month ago. He said a sixth company remains on the short list of potential buyers despite not providing the deposit or letter of credit. Eberly declined to identify which company that is.
Eberly said the county commissioners are ex-pected to appoint an evaluation panel likely comprised of one representative each from the finance department, the administrator's office and the legal department. A decision whether to sell is expected by June 30, he said. Any decision could have an impact on the fiscal 2009 budget, which begins July 1.
The six companies are The Lions Center for Rehabilitation and Extended Care, Cumberland; North Bay Health Associates LLC, Miami, Fla.; Complete Health Care Resources - Eastern Inc., Dresher, Pa.; Allegany Healthcare Group LLC, also known as Mid-Atlantic Health Care LLC, Cumberland; Neis-wanger Management Services LLC, Hyattsville; and GC Healthcare Management Inc., Lonaconing.
"Once we've had an opportunity to evaluate the proposals, we anticipate meeting again with commissioners to ascertain interest in moving forward with potential negotiations with some of the firms," Eberly said.
At least one of those firms has expressed interest in those negotiations remaining confidential, Eberly said.
Allegany County is one of three Maryland counties, along with Harford and Frederick, to own and operate a nursing home facility.
"Operating a nursing home is not a traditional, core government function," Eberly said. "By and large, there's certain experience a larger (firm) could bring into the equation."
New management would have a major task ahead of it. The Furnace Street facility was $1,082,598 short of breaking even in 2005 and $747,657 short in 2007, according to figures provide by Director of Finance Jerry Frantz.
Al Konrad, executive director of the nursing home, has briefed the county commissioners that "every cost that could be cut has been cut." He said the facility is hampered by a number of fixed costs, including $450,000 annual payment into a retirement fund for employees and $250,000 for post-retirement health care for former employees.
The bottom line also is hurt by families failing to pay their bills, Konrad said. Eberly said the nursing home's value is relatively high despite the financial setback. He said the value of a skilled work force, already in place, helps offset such negative viewpoints.
"Regardless of the financial position that the county's ownership of the nursing home has meant to our general fund, our nursing home is a viable option to interested parties in the private sector," Eberly said. "Without a qualified and experienced work force, the nursing home as an asset wouldn't be valued as highly as some of these (bidding) organizations have valued it. They recognized that we have a very good work force there."
Contact Kevin Spradlin at kspradlin@times-news.com.
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