Johnson Says Deal Imminent On Hospital

Company in Talks Is Not Identified

Jack B. Johnson said the governor wants to "close this deal." (Marvin Joseph/twp - The Washington Post)

Prince George's County Executive Jack B. Johnson said yesterday that he hopes to "consummate" a deal within days with a new company to take over the county's ailing hospital system.

Johnson (D) said that he briefed Gov. Martin O'Malley (D) on his negotiations Monday and that he and the governor are "conceptually" on the same page about how to proceed.

"He said, 'I want to see if we can close this deal,' " Johnson said of the meeting. "He said, 'We are on the same wavelength.' "

O'Malley spokesman Rick Abbruzzese confirmed the meeting, calling it "cordial" and adding that "all parties are committed to coming to a mutually agreed-upon, long-term solution."

Still, tough decisions remain about who would pay for such a deal.

Johnson said the company that he is negotiating with to take over the system -- which he would not name -- has asked for "really, really big" dollars. He would not specify how much the company has requested in public financing, but he confirmed that more than $300 million is needed to make the system viable.

Dimensions Healthcare System has run the troubled system, which includes Prince George's Hospital Center as well as campuses in Bowie and Laurel, since the mid-1980s.

Johnson said negotiations are underway with the prospective company on how the money would be secured, including the amount that might come from local and state taxpayers. "All I need [O'Malley] to do is drop the big money," Johnson said, with a laugh.

A source close to the process, who asked not to be named because of the private nature of the talks, said Johnson has provided the state with "no formal details or anything in writing" about his negotiations.

The county-owned system serves about 180,000 patients a year, many of them poor and uninsured. It has lost money for years, relying on a series of infusions of public money to keep its doors open. Last month, the county gave the system a $5 million bailout, but that money is estimated to last only though the end of the month. Now, local and state leaders are discussing a more permanent fix for the hospital's problems, including the possibility of selling the system to a new company.

State funding could be complicated by a projected $1.3 billion budget shortfall next year. Meanwhile, members of the Prince George's County Council, which must approve local expenditures, have said that they believe health care is a state responsibility and that they are hesitant to spend more local money on the hospital system.

"We believe the state should fix this, not the citizens of the county," Council Chairman Camille Exum (D-Seat Pleasant) said yesterday.

Johnson's comments suggested a more congenial relationship with state officials than indicated by John M. Colmers, Maryland's secretary of health and mental hygiene, at a public gathering last week.

Colmers said that he knew nothing about Johnson's negotiations but that he wanted a "transparent" process, preferably one that involved a competitive bidding process independent of politics. He said the state was ready to spend significant dollars, but only under certain conditions.

"From the state's standpoint, we want to be sure the deal is the best deal," he said.

Staff writer Ovetta Wiggins contributed to this report.