New Bailout Proposed for Pr. George's Hospital System

Prince George's County Executive Jack B. Johnson met secretly with the county's delegates yesterday to present a long-awaited plan to bail out the county's financially troubled hospital system by transferring ownership to the nation's largest Catholic health-care system, a proposal that could run into trouble with state officials because of its cost.

Under the proposal, Ascension Health would take over the struggling hospital system beginning July 1. It would be subsidized by $495 million in public money, with $297 million coming from the state and $198 million coming from the county, according to several sources familiar with Johnson's proposal. The transfer would take five years and be overseen by an authority with seven members, five appointed by the county and two by the state, the sources said.

Johnson (D) declined to speak publicly about the negotiations, telling the county's delegation that he would brief them only if the meeting were closed to reporters. Several lawmakers confirmed details of his plan, but only on the condition of anonymity because they said Johnson swore them to secrecy.

Johnson said he has been negotiating with Gov. Martin O'Malley (D) and St. Louis-based Ascension and hopes to formalize a deal next week. But some Prince George's legislators said the state is unlikely to support the deal because it would require too big a state contribution amid an economic downturn and because the authority would be controlled by the county.

One delegate from the county went so far as to say, "It's the kind of deal the state will laugh at."

Further complicating the negotiations are concerns from some lawmakers that Ascension could prohibit doctors from performing abortions or distributing birth control at the facilities.

"It certainly could throw a monkey wrench into it," Del. Victor R. Ramirez (D-Prince George's) said, noting that most of the county's delegates and senators support abortion rights.

Ascension did not respond yesterday to several phone calls.

Johnson's plan is designed to help stabilize the hospital system, which is composed of Prince George's Hospital Center in Cheverly, Laurel Regional Hospital, the Bowie Health Campus and two nursing homes. The system, which is owned by the county and managed by the nonprofit Dimensions Healthcare Systems, serves about 180,000 patients each year.

The county's delegation is pressing forward with legislation to transfer ownership of the county-owned hospital system to a state authority, said Del. Barbara A. Frush (D), chairman of the county delegation.

"We can't take the chance of ending up empty at the end of the session," Frush said.

O'Malley told Johnson that he "would be happy to review the county's proposal," but is waiting to get input from fiscal and health-care experts before making a decision, spokesman Rick Abbruzzese said.