Hospital Takeover Proposal Sparks Friction in County

County Executive Jack B. Johnson (D) is balking at a state proposal. (Mark Gail - Twp)

Prince George's County Executive Jack B. Johnson (D) and members of the County Council told a Maryland Senate committee yesterday that they oppose a plan that would create a state-appointed authority to take over the county's hospital system.

The county's position put it at odds with Gov. Martin O'Malley's administration, the county House delegation and the hospital union, all of which strongly support a bill that was passed by the House of Delegates this month to create the authority.

The hearing was emblematic of the friction between the state and the county over the future of the hospital, with county officials blaming the state for not doing enough to support the hospital, and state officials saying it is time to come up with a long-term solution, not Band-Aids, to address the financially strapped health-care system's needs. At issue is who controls the hospital -- the county or state -- and who pays for it.

Last week, Health Secretary John M. Colmers said he would recommend to O'Malley (D) that no additional state money be given to the hospital unless a plan to establish a state-run authority to oversee it is approved by the legislature. The authority would be empowered to tax county residents to retire the hospital's debt.

Executives of Dimensions Healthcare System, which oversees the hospital, have said that the hospital will run out of cash at the end of this month and will need $9 million to stay open through June.

With the county and the state at odds and less than two weeks before the General Assembly adjourns, Sen. Ulysses Currie (D-Prince George's), chairman of the Budget and Taxation Committee, suggested that a working group be created so both sides can resolve their differences.

"You're working with an agreement from a year ago, and this bill creates a new process," Currie said. "The question is, can we marry the two?"

Johnson told the committee that he was surprised to learn last week that Colmers did not support his plan for a private hospital to take over Dimensions.

Johnson's plan would cost $370 million over 10 years, with a mix of state and county money paying for the bailout. He offered no specifics on the plan yesterday. He also declined to tell the senators at yesterday's committee meeting the name of the hospital he is negotiating with to take over the hospital system from Dimensions. However, he confirmed in an interview with The Washington Post on Tuesday that it was Doctors Community Hospital in Lanham.

"I agree that the state shouldn't be imposing a county tax, but your plan seems a little nebulous," said Sen. J. Lowell Stoltzfus (R-Somerset).

"The process was anything but open and transparent," said Quincey Gamble, a union leader.

The hospital authority, whose members would be selected by O'Malley and confirmed by the Senate, would develop a long-term plan for Dimensions. It would also be able to raise local taxes, negotiate with the hospital system to acquire the rights of the property and assume the debts and pension liability.

The state yesterday offered several amendments to the House bill, including one that would expand the membership on the authority from five to seven, with the County Council and county executive each appointing one member.

Colmers supports a $374 million state plan that includes raising the county tax by at least 1 cent per $100 of assessed value to pay off the debt and pension liability.

County Council Chairman Camille Exum (D-Seat Pleasant) said it was "unconscionable" for the state to tax county residents. "This council will not ever support a bill that is not in the best interest of Prince George's County," she said, arguing that the state should take on more of the burden for the costs of the hospital, which serves patients from around the region.

Del. Derek Davis (D-Prince George's), who voted in favor of the bill, told the committee that he was offended by Exum's remarks.

He said the county House delegation "stepped in where there was a void" and was never briefed on the county's plan for the hospital. "We decided that the foolishness needed to stop," Davis said. "There are those who say they are working in the best interest of Prince George's County, like I'm not. I find that very offensive."