Panel: Economy hindering plan to sell hospitals
Extension may be sought as group considers another deal to save county system
A state panel charged with finding buyers for the troubled Prince George's County hospital system said Monday it would like to look at other options to bail out the financially ailing hospitals an announcement made the same day the panel was supposed to reveal the names of prospective buyers for the medical centers.
Members of the Prince George's County Hospital Authority, a group of state and local officials responsible for coordinating the sale of the hospital system, said the economy and other factors make them hesitant to present a deal for selling the county-owned hospitals in Laurel, Cheverly and Bowie.
The hospital bids appear to require financing that is not available in the struggling economy, according to authority reports.
"As it approaches the time for making recommendations to stakeholders, however, it is becoming increasingly likely that the authority's final determination will have to deal with an economic situation that stakeholders could not have anticipated," according to a staff report given to The Gazette.
The report goes on to say that "financing that might have been available ... will be more difficult to secure" in the current economy.
The authority, formed last year after county and state lawmakers agreed to have the independent group handle the sale, was originally scheduled to present a deal to the state legislature in March, but applied for a one-year extension so they could evaluate the system and attract interest.
Now the group is considering asking the Prince George's County government and state legislature for another extension so they can evaluate other steps, including a new state offer to have the University of Maryland Medical System take over or build new facilities as public teaching hospitals, members said.
"I think we have options," said Authority Chairman Kenneth Glover at a meeting Monday. "There's an opportunity to work on this."
Authority reports mention the possibility of working with interested bidders to provide better health care and even "constructing a new hospital system" rather than selling the centers.
Authority members were supposed to reveal the names of prospective buyers who have made offers for the hospitals on Monday. Bidders' information has not been publicly revealed, and negotiations have been going on for more than a year.
For years the county medical centers have been in danger of closing because about 25 percent of the system's patients are uninsured, creating an average $12 million loss each year. Dimensions Healthcare System, which manages the hospitals, has relied on state and county aid to remain open.
At the same time, the hospitals are in high demand. The Prince George's Medical Center in Cheverly is the second-busiest trauma center in the state, and health officials say its closing would be catastrophic to the region's emergency and health needs.
As of this fall, the authority had nine bidders for portions of the three hospitals. But only one, Dimensions, offered to purchase all three sites.
Board officials declined to disclose details of the bids or the most recent offer by the University of Maryland Medical System. Members said they want more time to create a different deal.
"Everyone on the authority is committed to making this work," said member Thomas Himler. "We came to a conclusion that we wanted a first-class hospital. Sometimes that is not going to fit perfectly to a schedule."
"This takes a bit of time," he added. "All I ask is that you don't put us in a box."
A representative for Gov. Martin O'Malley (D) declined to comment after the meeting Monday.
Hospital supporters said they remain hopeful about the ongoing efforts.
"We just want to know we are going to have a great plan," said Dr. Gita Shah, vice president of medical affairs for Dimensions.
E-mail Daniel Valentine at dvalentine@gazette.net.