Hospital Authority Offers Progress Report

Sale of System in Works, Group Says

Authority members charged with finding a new owner for the long troubled Prince George's hospital system said yesterday that there are bidders interested in buying the facilities, and they hope to bring the General Assembly a plan for the sale before the end of next month's legislative session.

The law passed last spring that established the seven-member Prince George's Hospital Authority requires it to present a plan for the sale of system, which includes the Prince George's Hospital Center in Cheverly, by the start of the legislative session Jan. 14.

The authority decided yesterday that it will request a 60-day extension for presenting its final report, an option available under the law. Still, Chairman Kenneth Glover said the relatively modest delay is an indication that negotiations are underway with interested buyers. The extension would still allow the authority to present a plan for the hospital system's future before the end of the 90-day session.

"It would still allow us to get something in time for the General Assembly to act on it," he said. "This is a positive sign."

Glover did not name any companies with whom the group is talking, saving a more complete discussion of the bidding process for a closed-door meeting held after the authority's public hearing.

The authority was appointed jointly by the state and county to determine the hospital system's future.

The system has lost money for years, surviving only through infusions of taxpayer funds, often approved by elected leaders after tumultuous political wrangling.

The system, which serves about 180,000 patients a year, also includes Laurel Regional Hospital, the Bowie Health Campus and two nursing facilities. Its land and buildings are owned by Prince George's County but it is managed by the nonprofit Dimensions Healthcare.

The creation of the authority was intended to secure the system's long-term future by finding a new and more stable health-care company willing to buy the physical assets from the county and take over the hospital management from Dimensions.

One option that has been discussed could involve selling the system's facilities separately, but that is opposed by the union representing hospital workers.

The county and state have agreed to each pay $12 million, this year and next, to support the system during the sales process. The governments have also agreed to offer as much as $174 million in future funding for operating and capital expenses to lure potential bidders. The money would be spent over five years, available starting in fiscal 2011.

If the authority is unable to secure a deal this year, the county and the state will be relieved of their obligations to fund the system. Figures presented by Dimensions yesterday indicated that without the public funding, the system would be losing money now.

Sen. Ulysses Currie (D-Prince George's), who as chairman of the Senate's Budget and Taxation Committee has long worked to stem losses at the hospitals, said he was encouraged by the authority's progress.

"We've been working for years to get to this point," he said.