State, County Formalize Funding Agreement for Prince George's Hospital System
Hospital Authority Seeks Qualifications for Professional Consultants
PRINCE GEORGE’S COUNTY, MD (July 25, 2008) – State and County Officials have formalized an agreement on the long-term funding of the Prince George’s Hospital System, committing to a combined investment of $174 million over five years. The agreement, signed this week by all parties, includes a commitment of $150 million in financial support by the State and County, beginning in Fiscal Year 2011, and will be split evenly by the State and County, each committing to $75 million. 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.
This long-term funding agreement now triggers the State’s and County’s obligation to provide short-term interim support to Dimensions Healthcare Corporation, the system’s current operator, to help sustain the operations of the health care system pending its transfer to a new owner or owners. Both the State and County have agreed to provide a total of $12 million each in FY’09 and FY’10, and the execution of the long-term funding agreement enables them to make their first quarterly installment of this interim support.
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, is now seeking qualifications for professional consultants to perform a variety of tasks related to the Authority’s mission. The Authority is seeking firms to provide acquisition and financial advisory services to assist the Prince George’s County Hospital Authority in conducting an open bidding process and facilitating an agreement to transfer the health care system to a new owner.
The Request for Qualifications (RFQ) is now available for response on both State and County websites.
During its 2008 session, the Maryland General Assembly passed an emergency bill, House Bill 1039, creating the Prince George’s County Hospital Authority. A seven-member public body appointed jointly by the Governor, Prince George’s County Executive the Prince George’s County Council, and the presiding officers of the General Assembly, the Authority’s mission is to implement an open, transparent, and competitive bidding process for the purpose of facilitating the acquisition of the health care system by an entity or entities providing health care services inside or outside the State.
