Agency to Look for Owner For Prince George's Hospitals

Maryland Gov. Martin O'Malley (D) yesterday signed into law a bill establishing an independent authority that will seek a new owner for the Prince George's hospital system, the start of a new chapter in the long effort to save the ailing system.

The bill was among 145 signed by the governor in the last of three ceremonies since the General Assembly adjourned last month. Other measures that will become law this year include prescription drug subsidies for thousands of seniors, increased support services for returning veterans and their families, and new health and property benefits for same-sex and other unmarried couples.

Other new laws raise civil penalties for adults who serve alcohol to underage drinkers and encourage public schools to purchase food grown by local farmers for school lunches.

Despite the objection of consumer groups, the governor also signed a bill that allows a Columbia-based, for-profit credit counseling firm whose business practices are under review in multiple states to be licensed in Maryland.

Opponents say that for-profit counseling firms are predators cashing in on financially vulnerable homeowners. But O'Malley pledged that state regulators will be vigilant in monitoring the business practices of for-profit and nonprofit companies.

The Prince George's hospital authority law is the outcome of a long-sought deal between the state and the county. Each has agreed to pay $12 million annually for the next two years to keep open the system anchored by Prince George's Hospital Center in Cheverly. The authority will oversee the search for a new owner for the financially hemorrhaging system now managed by the nonprofit Dimensions Healthcare System.

To lure bidders, the county and state must now agree to pledge operating money and funds to help refurbish outdated facilities.

All involved have said the process could finally stabilize the system -- but it provides no guarantees of success. For example, it calls for significant public investment in the private hospital system at a time of economic uncertainty.

The county and state will have 60 days to solve the core dilemma that has bedeviled previous attempts to put the hospital system on more stabile footing: how much public money should be offered to attract potential bidders and how to split those costs between the state and county.

If they cannot decide, they can agree to one 30-day extension. If there is no resolution by August, both sides would be relieved of any obligation to fund the system. Without additional public subsidies, hospital leaders have said, the system could shut down.

The domestic partnership bills signed by O'Malley were supported by gay rights advocates and opposed by the Maryland Catholic Conference. Members of same-sex couples failed to win marriage equality or civil unions in the legislative session but did gain rights in one of the bills to make numerous medical decisions for each other if they meet standards to prove they are a committed couple. The other bill exempts domestic partners from paying property transfer taxes when one partner dies.