MEMORANDUM
TO: City Council
FROM: David J. Deutsch, City Manager
SUBJECT: Legislative Update - Review of Legislation Regarding
Prince George's Hospital PG 430-07/HB 510-07 and
PG 418-07/HB 678-07 and Subdivision Appeals PG 114-07/HB 665-07
DATE: February 15, 2007
At its Regular Meeting on February 5, 2007, Council requested that staff review two bills before the General Assembly. A synopsis and analysis of each bill is provided below. The bills are also attached.
PG 418-07 – University of Maryland Medical System – Acquisition
of Prince George’s County Hospital System
This bill, sponsored by Delegate Victor Ramirez, would require the University
of Maryland Medical System to purchase the ”health care facilities in
Prince George’s County that were operated by Dimensions Healthcare System
on November 1, 2006, including Prince George’s Hospital Center and the
Laurel Regional Hospital.” It does not specifically mention the Bowie
Health Center and other Dimensions facilities, but they would appear to be
included in this buyout. The bill states that funds for the purchase would
come from the Operating Reserve Fund for the Medical System Corporation and
would be subject to the approval of the Board of Public Works and subject to
appropriation in the State Budget. This purchase would provide a long-term
solution to the financial difficulties of Dimensions Healthcare and would not
negate the $5 million payment recently approved by the Prince George’s
County Council.
Another approach to the rescuing the financially challenged Dimensions Healthcare System is PG-430-07, Prince George’s Hospital Authority, which was recently introduced by Delegate Doyle Nieman. It would establish a Prince George’s County Hospital Authority. The Authority would acquire the facilities owned by Dimensions Healthcare and would assume certain liabilities of Dimensions Healthcare. The Authority would have the power to sell the facilities to another entity and could issue revenue bonds. In addition, in January 2008 the Authority would have the power to impose a property tax increase to cover the cost of assuming long-term bond and pension liability and the cost of purchasing facilities from Prince George’s County.
Dimensions Healthcare System is working hard to keep its system afloat. The short-term infusion of $5 million by the County, discussions with the O’Malley administration to include a financial parachute in the State budget, and these two bills are all attempts to solve the problem of a hospital system challenged by caring for large numbers of poor and uninsured patients.
While Bowie has an interest in what happens to the Dimensions System and particularly to the Bowie Health Center, at this juncture it would seem prudent for Council to adopt a wait-and-see approach to bills regarding the system.
The staff recommendation is No Position.
PG 114-07 Prince George’s County – Maryland National Capital Park
and Planning Commission - Subdivision Appeals, sponsored by the Delegation
Chair on behalf of the Prince George’s County Council.
This bill would create an intermediate level of appeal by the District Council for subdivisions. Prior to a 2001 case decided by the Maryland Court of Appeals, it was assumed that the District Council already had this authority. During the Amber Ridge debate the District Council disapproved the subdivision plan after it had been approved by the Planning Board. The Court of Appeals vacated the decision because the District Court had no implicit authority to decide these types of cases.
The Maryland National Capital Park and Planning Commission is opposed to the bill, but the District Council has sought this authority since the 2001 decision by the Court of Appeals took away the presumed authority to review cluster subdivisions and traffic mitigations plans approved by the County Planning Board. In the past the City has supported giving the District Council the authority to become involved in reviewing development decisions by the Planning Board.
The staff recommendation is to support this legislation because it provides
a level of appeal for Planning Board decisions regarding subdivisions.