Several healthcare organizations are reportedly interested in buying three struggling public hospitals in Maryland, according to the Prince George's (Md.) County Hospital Authority.
The Hospital Authority, which is appointed to negotiate the sale, would not identify or say exactly how many companies are interested in the three hospitals in Laurel, Bowie and Cheverly, Md.
"At this point in time, it's not an appropriate question," said Kenneth Glover, Authority Chairman. Glover said interested companies must sign formal letters of interest by the end of the month.
Though the county-owned hospital system has existed for 50 years, it has been losing money since 1997, with uninsured patients causing shortfalls of roughly $12 million annually. The state of Maryland and Prince George's county governments have helped with emergency funding.
After years of failed legislation designed to stabilize the public hospital system, state and county officials agreed this spring to sell. Members plan to have a deal for the General Assembly to vote on in January.
"It still all fits in within the time frame we've set up," said Glover. "We're good. I'm satisfied that there is a response."
A consultant for the Hospital Authority sent out 83 letters to healthcare companies last month looking for interested buyers. The 83 letters were sent to 65 nonprofit hospitals, 21 with operations in more than five states. Nineteen of the companies already have hospitals in Maryland or Washington, D.C.
After signing a letter of intent, interested companies will move on to the next phase of negotiations, where Authority members will share information about the hospital system's finances and facilities. Officials would then await formal bids.
The Authority will commission an appraisal to determine the exact value of the three sites. The new buyer will receive an additional $174 million to upgrade the hospitals once purchased.