A Prince George’s County Council member is worried that proposed state legislation related to the county’s hospital system could mean cuts to other public services.
Under Prince George’s Del. Doyle Niemann’s bill, a governor-appointed board would have the ability to issue revenue bonds to pay off a $150 million debt accrued by the operator of the county-owned hospital system. Money to repay the bonds would come from county tax revenue “over a long period of time,” Niemann has said.
At Tuesday’s council meeting, Council Member Thomas Dernoga said: “… What I take from this is we will cut funds from schools, police and fire.”
“For the state to ask citizens of this county [to accept the] burden of bailing the system out … is a problem for me,” Council Chair Camille Exum said. The council later voted unanimously to oppose Niemann’s bill.
Last month, the county gave operator Dimensions Healthcare $5 million to keep the hospital system fully functional through March, and the firm has said it will need an additional $9 million infusion to continue through June. The county has said it plans to have a new owner and operator in place or at least identified by late March, but County Council Member Samuel Dean has suggested that might not be enough time.
Under a $26 millionstabilization plan announced last March, Dimensions was to receive $15 million from the county and $11.3 million from the state. Spokesman John Erzen, who represents County Executive Jack Johnson, has said the county put approximately $50 million into Dimensions over the past four years.
Currently, any entity that acquires Dimensions would begin $150 million in the hole. Eliminating that debt makes it “more attractive to potential partners,” Niemann has said.
Dimensions spokeswoman Suzanne Almalel on Wednesday said her firm supports the bill and it’s “sad” that the council opposes it.
“This is to help people in their community get health care,” Almalel said. “They think it’s a state issue, but it’s a county-owned property.”
Niemann didn’t return calls Wednesday seeking comment.
