First deadline nears for hospital funding plan

State health authorities prepare for worst in case no agreement is reached

The county hospital system, which includes hospitals and other facilities in Laurel, Cheverly and Bowie, has operated at a loss for 10 years, requiring hefty bailouts from the county and state. Its problems have been blamed on its large number of uninsured patients.

Under an agreement passed by the General Assembly earlier this year, the state and county have until Monday to decide what each side would contribute to decrease the hospital’s $100 million debt and to upgrade the facilities, estimated at $100 million more, in hopes of making the system attractive to potential buyers. A seven-member hospital authority was formed to review bids on the system.

If officials miss the deadline, they can extend negotiations until Aug. 20. If that date passes, either side could abandon the process, leaving the hospital with an uncertain future again.

County officials were unable to say if they would meet the initial deadline, but were optimistic that they will reach a deal by the final date.

‘‘We’re confident we’ll meet the deadlines we have to meet,” said John Erzen, spokesman for Prince George’s County Executive Jack B. Johnson, adding that negotiations were ‘‘ongoing.”

Colmers declined to say what the alternatives would be if Prince George’s and Maryland officials cannot agree.

‘‘We’ll be doing whatever we can to make this work,” he said.

Colmers said that when a similar deal failed in 2007, the health department began studying what impact the closure would have on other hospitals in the state. That contingency plan remains, he said.

‘‘We haven’t dusted them off,” Colmers said. ‘‘We’re continuing to monitor the situation.”

Experts say the hospital funding figure is the key to the current deal’s success. A private owner is unlikely to take on the debt-ridden public hospital system unless financial assistance is available.

Money issues have scuttled past hospital agreements between the county and state, and ongoing financial problems have threatened to close down the hospital system multiple times, leading to the latest sell-off attempt. Authority members are supposed to find a buyer for the system by January, in time for the Maryland General Assembly to approve the deal. If everything works out, a new buyer would take over the hospitals in 2010.

Though the authority held its first meeting earlier this month to start arranging for the hospitals to go out for bid this fall, members admitted that their hands are tied until the governments reach an agreement on the cost.

‘‘If there’s no state and county deal, there’s no deal,” said Kenneth Glover, authority chairman.

Peggy Watson, the state’s designated negotiator for the funding agreement, and Iris Boswell, the county’s negotiator, did not return calls, referring inquiries to public affairs personnel. Erzen said Boswell and Watson talk several times a week.

A spokesman for Gov. Martin O’Malley was unable to say if Watson and Boswell would meet the July 21 deadline.

‘‘While we expect to meet the original deadline, a decision has not been made to request that extension,” spokesman Shaun Adamec said Monday.

Prince George’s is the only county in the state that still owns a hospital, Colmers said. Prince George’s and Maryland have already agreed to contribute $12 million a year through 2010 to keep the hospital system breaking even.

Public health and political pressure are both in play this time around. After years of failures, voters are demanding that the governments take action, said Del. Carolyn J.B. Howard (D-Dist. 24) of Mitchellville, who said the governments must make the deal work.

‘‘Whatever it takes,” she said. ‘‘We want a first-class hospital. The people of Prince George’s County are willing to do whatever it takes to keep it.”

Losing the hospitals would be devastating to the region’s health care and emergency system, Colmers said. Prince George’s Medical Center in Cheverly is the designated center for trauma victims and emergency helicopter flights in the region, and more than 180,000 patients turn to the county system each year.

‘‘That increases your Medevac times and your ambulance cycle times increase,” Colmers said, describing the impact a closing would have on emergency services. ‘‘Failure to reach that agreement will have consequences.”

E-mail Daniel Valentine at dvalentine@gazette.net.