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Monday, February 6, 2006

Hospital renewal sought

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Prince George's County officials yesterday said they want a new nonprofit group or academic medical center to take over the county's struggling hospital system, and terminate their lease with the current cash-strapped management company.

The move comes weeks after Dimensions Healthcare System, which runs Prince George's Hospital Center and Laurel Regional Hospital, warned county officials of closure without a cash subsidy of $2.5 million per month.

Yesterday, county officials downplayed the likelihood of a closure.

"There is no expectation that this county's health system is closing," said Michael D. Herman, chief of staff for County Executive Jack B. Johnson, a Democrat.

Mr. Herman made his comments during an industry briefing by county officials about their plans to seek a merger or acquisition of the health system.

Officials also said they want the new operator to build a hospital in Cheverly or Laurel, while they devise a strategy to fix Dimensions' pension underfunding and bond indebtedness.

The county currently leases operation of its health system through a deal with Dimensions, which has struggled financially in recent years.

A government report last year found that Dimensions lost more than $50 million between 1999 and 2004.

In 2004, state and county officials agreed to provide a $45 million bailout to help keep the county's largest health care provider afloat.

The system, which employs more than 2,000 workers, includes the 296-bed Prince George's Hospital Center, 138-bed Laurel hospital, a freestanding emergency department in Bowie and a 120-bed nursing home in Cheverly.

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