Governor, Prince George's County Executive and County Council Reach Tentative Agreement of Funding for Prince George's Hospital
ANNAPOLIS, MD (July 18, 2008) – Governor Martin O’Malley, Prince George’s County Executive Jack Johnson and the Prince George’s County Council have reached an agreement in principle on the funding for the Prince George’s Hospital, and have formally requested a 30-day extension allowed under the law to formalize that agreement.
The funding arrangement, which will be formalized over the next thirty days and has been agreed upon by all parties in principle, includes a commitment of $150 million in grant support by the State and County. Funding will be spread over five years beginning in Fiscal Year 2011, and will be split evenly by the State and County, each committing to $75 million. In addition, as part of the agreement, the State will commit an additional $24 million in capital support. These funds are being committed by the State and County for support of the Prince George’s County Healthcare System if the bidding process results in an agreement to transfer the system to a new owner or owners.
[ View a copy of the “Notice of Extension of Time” ]
In mid-June, Governor O’Malley swore in the members of the Prince George’s Hospital Authority, the seven-member board that is primarily tasked with facilitating a process to find a new owner for the Prince George’s Hospital System, currently operated by Dimensions Healthcare System. The Authority will solicit bids from healthcare companies interested in taking over the system. The bidding process is required to be completed prior to the 2009 Legislative Session.
In addition to the establishment of the Hospital Authority tasked with finding a new owner for the ailing system, the legislation requires the State and County to reach agreement on long-term public funding for the healthcare facility, necessary to attract new bidders to the process. Once this agreement is reached, the legislation provides that the State and County invest in the continued operation of the system until a new owner is identified.
[ View a copy of the “Request for Qualifications” ]
