A Maryland appellate court has postponed a $2 million payment to the cash strapped Prince George’s County Hospital system, jeopardizing the system’s ability to keep operating, officials said. The Maryland Court of Appeals in Annapolis put a stay on an a lower court’s order for Prince George’s County to pay Dimensions Healthcare Systems the $2 million.
That means Dimensions will have to scramble for operating funds until the case can be heard in court. The issue is scheduled to be litigated in September, officials said.
Executives at the troubled company have said that they can’t serve the county unless they get an infusion of public cash quickly.
County executive Jack Johnson couldn’t be reached for comment. County Del. Doyle Niemann said he couldn’t understand why Prince George’s wouldn’t relent to Dimensions’ demands.
“It’s unfortunate that the county continues to fight this battle,” he said, “which serves no purpose except to endanger the hospital.”
Dr. Hema Yadla, a member of Dimensions’ board, also was despondent over Friday’s ruling. He said he was worried that relations between the company and the county were irreparably harmed by the ongoing, increasingly bitter litigation.
“This is very sad,” he said. “The two parties are tugging at each other and they already broke the rope, probably. It’s beyond negotiations at this point.”
Dimensions had argued that the county illegally froze some $14 million in assets in order to force the group to kick four people off its board of directors. The company runs six hospitals and clinics in Prince George’s county — including the county’s only trauma center.
A lower judge dismissed $12 million of Dimensions’ complaint earlier, but ordered the county to pay the rest by Aug. 9. The county took its case to the Maryland Court of Appeals.
(Examiner reporter Bill Myers contributed to this report.)
