Hospital plans to sue Prince George’s

Dimensions seeks money it was promised; county says hospital operator has reneged on its agreement to cut costs

The Dimensions board voted to sue after meeting in a closed session Tuesday. It was the latest escalation in a standoff with Johnson (D) that began last month when he demanded that four board members step down or he would withhold the remainder of the 15 months of funding he and the council had pledged. The board refused, and Johnson has not backed down.

‘‘It seems unfortunate that we’re dealing with a board that would rather potentially see the hospital close than have four members resign to keep the hospital running,” Johnson spokesman John Erzen said.

He said he didn’t know whether there would be enough time to resolve the suit before the hospital runs out of money, but ‘‘there’s no more money coming from the county [unless the board members step down], and that’s the reality of it.”

Dimensions has scheduled another meeting for July 12.

Tensions mounted when Dimensions issued an ultimatum of its own to Johnson on June 29, calling for the county to pledge $26 million to the hospital to avoid legal action.

The county did not respond to the counterproposal.

State officials who have tried to stabilize the system were disappointed that the hospital’s finances have again been imperiled by what they say is county politics.

‘‘It’s clear that this isn’t just a misunderstanding or philosophical difference. Plain and simple, this is all personal, and it’s not fair to anybody ... this is all just nonsense,” said Del. Dereck E. Davis (D-Dist. 25) of Mitchellville.

State officials had drafted a long-term plan for the hospital earlier this year, but that fell through on April 9, the last day of the General Assembly’s legislative session. The county’s promise to come up with 15 months of funding staved off the threat of bankruptcy or shutting down the hospital system, which includes Prince George’s Hospital Center in Cheverly, the Bowie Health Campus, the Laurel Regional Hospital, the Gladys Spellman Specialty Hospital & Nursing Center and the Larkin Chase Nursing and Rehabilitation Center.

The dispute over board member resignations is pointless, Davis said, because state legislation next year could restructure the management of the hospital anyway.

Johnson froze funding to the system on June 19, claiming Dimensions failed to live up to its obligation to restructure the board. Faced with a financial crisis, board Chairman Calvin Brown said in a toughly worded letter that the county should sign a written contract with the hospital system to guarantee it will pay out the remainder of the $33 million the hospital claims it needs to get through June 30, 2008. The county has paid $7 million since April.

Johnson spokesman James Keary said Dimensions has failed to honor its obligation to cut costs. Dimensions’ financial data compiled by the county showed the hospital’s expenses have continued to rise over the past four years, even as admissions have declined.

County Council Chairwoman Camille Exum (D-Dist. 7) of Seat Pleasant released a statement June 29, saying the county was committed to providing access to health care, but that Dimensions has mismanaged the hospital. She said Dimensions still has not honored the obligation to reconstitute its board, which she claimed was made when the county offered $5 million to the hospital in January.

Dimensions board members claim the funding was offered unconditionally.

Brown’s letter also said Johnson’s ‘‘unilateral” attempt to increase the county’s representation on the board would result in bankruptcy.

‘‘The county has made no secret of its desire to see Dimensions go into bankruptcy and, if the county obtained control of the board, no doubt such action would follow shortly,” the letter said.

Keary called that claim a ‘‘red herring.”