House Delegation Backs Tax for Hospital Bailout

State lawmakers from Prince George's County and a key House committee passed legislation yesterday that would tax residents to infuse millions of dollars into the county's financially strapped hospital system.

The Prince George's House delegation unanimously approved a bill that would tax county residents to help pay off more than $100 million in debt held by Dimensions Healthcare System, the nonprofit company that runs Prince George's Hospital Center in Cheverly.

The House Health and Government Operations Committee approved the levy on county residents and a separate measure that would provide the hospital system with $50 million over five years through a proposal to raise the state's tobacco tax. That measure, part of a larger bill designed to increase access to health care for uninsured people statewide, is likely to pass the House, leaders say. But the bill's future in the Senate is uncertain.

Senate President Thomas V. Mike Miller Jr. (D-Calvert) has said he opposes the plan because of the state's looming budget shortfall, which is expected to exceed $1.3 billion by next year.

Meanwhile, County Executive Jack B. Johnson (D) and the County Council strongly opposed the delegation bill to increase county taxes. He said responsibility for the hospital's troubled finances should not rest solely on the county. The County Council voted unanimously Feb. 27 to oppose the measure.

Under the bill, property taxes would be increased by as much as 2 cents per $100 of assessed value. Because county government taxes are capped by law, the increase would be added to the portion of property tax bills that goes to the Maryland-National Capital Park and Planning Commission. A taxpayer with a house assessed at $300,000, the county average, would pay an extra $60 a year.

The measure would allow the governor to set up an authority to devise a long-term plan for the hospital system, which includes health-care campuses in Laurel and Bowie in addition to the hospital in Cheverly. The authority would be charged with negotiating with management companies interested in taking over the hospital system. The authority also would acquire the hospital system's property and assume its $138 million bond debt and its pension liability.

Del. Doyle L. Niemann (D-Prince George's), the bill sponsor, said yesterday that passing the bill was a "prerequisite for additional money from the state." Many delegates said they had no alternative to supporting the measure.

Johnson has said that he is negotiating with a company to take over the system from Dimensions and that the company is seeking tens of millions in public compensation.

"I understand this may be a burden to the county, but a closure would be more a burden to the patients that walk through the doors each year," said Del. Barbara A. Frush (D-Prince George's).

County officials tried to dissuade the delegation from approving the bill.

Iris B. Boswell, deputy chief administrative officer for finance, said the legislation would have "significant negative impact on the county."