For immediate release:
February 5, 2016

Hannah Marr
Shareese Churchill

State Finances Part of Plan to End Decades of Subsidies Supporting Operation of County’s Main Hospital

ANNAPOLIS, MD – Governor Larry Hogan today introduced a supplemental budget for FY 2017 that will provide $15 million in operating funds for the Prince George’s Hospital System as part of a long-term partnership with the University of Maryland Medical System to address the chronic financial challenges associated with the county’s health care infrastructure.

Under the proposed plan, the Prince George’s Hospital System will receive $55 million in bridge funding between FY 2017 and FY 2021 as the construction of the Prince George’s Regional Medical Center moves to completion. This will result in the final closure of the old Prince George’s Hospital Center and the transition to the new hospital operated by the University of Maryland Medical System.

Governor Hogan submitted the supplemental to the General Assembly following a meeting with Robert A. Chrencik, president and chief executive officer of the University of Maryland Medical System, to discuss the long-term plans for health care infrastructure in Prince George’s County.

“For years, Maryland has been forced to fund the Prince George’s Hospital to keep the system functional and out of bankruptcy. The state cannot act as the perpetual backstop for the hospital and the taxpayers deserve a lasting solution and an assurance the bailouts will come to an end,” said Governor Hogan. “By transitioning operational responsibility for the county’s primary medical facility to an established health care leader – the University of Maryland Medical System – we can finally get control of the problem. I am pleased to be able to deliver the financing to bring about this important change, and finally end the county’s reliance on state subsidies to deliver basic health care services.”

Under the plan, the state of Maryland will contribute an additional $135 million for the construction of a new Prince George’s Regional Medical Center, including $27.5 million already allocated by Governor Hogan in the FY 2017 Capital Budget. The additional $55 million in bridge funding for operations will allow for the successful transition to the University of Maryland Medical System while also bringing to a close decades of operational deficits and financial uncertainty in the county’s main hospital.

Prince George’s County has also committed to match the state’s contribution in operational funding for the Prince George’s County Hospital.

Between 2002 and 2016, the state of Maryland has contributed over $206 million in both capital and operational financing for the Prince George’s Hospital System, including $178 million as part of two memorandums of understanding between the Prince George’s Hospital System and the previous administration.