Hospital Authority Hopes Bidders Will Join Forces

Only one of the nine companies bidding to purchase Prince George's County's beleaguered health-care system wants to run the entire network, raising the possibility that bidders may partner to develop more comprehensive proposals.

Eight bidders are not interested in or not capable of operating the system on their own, according to Donna Wilson, vice chair of a panel created to find a buyer for the system. The identities of the bidders were made public Friday.

Under a state law enacted this year, the Prince George's Hospital Authority may sell the system in pieces but cannot transfer any part of it until all of it is sold.

The county-owned health-care system serves 180,000 patients a year and includes the Prince George's Hospital Center in Cheverly and three hospitals and nursing homes. The system is being sold because it has lost money over the years, forcing the state and county to supply millions of dollars.

The hospital authority has asked the bidders to reconsider their bids and is encouraging them to form partnerships to "bolster" their proposals, Wilson said.

"We are hoping that" the bids will change, Wilson said. "There may be other [companies] brought into the fold through the partnerships."

Wilson would not identify the company that wants to buy the entire system. The network is operated by Dimensions Healthcare System, which is among the nine bidders.

Del. Doyle L. Niemann (D-Prince George's), who sponsored legislation to create the authority, said he was concerned about the companies that expressed interest.

"We need a health-care system in the county," he said, "and there is nobody on that list that operates a system or anything comparable to what we're talking about here except Dimensions, and they have long had money problems."

Among the other eight bidders is Solomon Eye Associates, a Bowie-based group of ophthalmologists with fewer than 10 employees, and HealthSouth Corp., a Birmingham-based rehabilitation company that is embroiled in a financial scandal. Richard Scrushy, HealthSouth's former chief operating officer, is being sued by shareholders for $2.6 billion, accused of faking profits, paying taxes on allegedly fraudulent profits and abusing corporate perks, according to published reports.

The other bidders are Anne Arundel Medical Center, Children's National Medical Center, Physicians Group of Laurel LLC, Rockledge Realty Partners LLC, Southern Maryland Hospital Center and Washington Adventist Hospital.

The state and county have agreed to offer $174 million over five years in operating money and capital to the winning bidder.

The authority plans to continue negotiations over the next 60 to 90 days and expects to have firm bids in place to transfer the system by Aug. 1.

Staff researcher Magda Jean-Louis contributed to this report.