Prince George’s hospital bill clears General Assembly

Governor and the county are left to work out a funding deal

Under the bill that cleared the Senate and House on Saturday, County Executive Jack B. Johnson (D) and the Prince George’s County Council must agree with the state on how much they are willing to subsidize the struggling hospital system when a private buyer takes over.

If the two governments can agree, an independent hospital authority will begin looking for a private company to purchase the three medical centers in Laurel, Bowie and Cheverly that have been losing money for more than a decade. If not, either side could walk away.

Questions of long-term financing have been a stumbling block for years. A similar proposal for a hospital authority died in the final hours of the 2007 legislative session when County Council members began to question the cost.

The difference with the plan that passed this year was that all parties were involved in discussions from early on, said Del. Tawanna P. Gaines (D-Dist. 22) of Berwyn Heights.

‘‘It was completely vetted,” she said.

Karen Campbell, a spokeswoman for the County Council, said members had no comment about the hospital bill. A spokesman for Johnson could not be reached for comment on Monday.

While the agreement calls for the county and state to pay $12 million each in fiscal 2009 and fiscal 2010 to keep the three hospitals open, it does not settle the extra cost of turning the system over to a private buyer.

Interested buyers have estimated it could cost more than $200 million to upgrade facilities and equipment, and the system also faces about $270 million in debts. It is unclear how much of that burden the county and state are willing to take.

The clock will be ticking. The agreement passed on Saturday sets hard deadlines for both sides to act, beginning as soon as Gov. Martin O’Malley (D) signs the bill, which could happen today.

The two sides must approve their future funding commitments within 60 days of the bill’s signing. The two sides may set one 30-day extension if needed.

Both governments also have 30 days to appoint three members to the hospital authority that will handle the bidding process. A seventh tie-breaking member will be appointed by the leaders of the General Assembly.

If the deadlines are met, the board would begin advertising for potential bidders by mid-summer. The group is tasked with lining up a buyer by January for the General Assembly to approve.

‘‘It keeps the discussion going,” said Sen. David M. Harrington (D-Dist. 47) of Cheverly.

Still, he said, the county faces a ‘‘better situation” this year to keep the hospital system open.

‘‘We’ve gotten past all that game playing and the framework is there,” said Del. Doyle L. Niemann (D-Dist. 47) of Mount Rainier.

‘‘At least we’re walking away with some sort of deal,” said Stacey Mink, spokeswoman for SEIU 1199, the union that represents hospital system’s workers.