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Pr. George’s gets stay on $2M hospital system payment
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Related Topics: Prince George’s County
Prince George’s County (Map, News) - Prince George’s County might no longer be required to make a $2 million payment to the company running the county hospital system, thanks to a court ruling this week.
At the very least, the county now has a little more time to make the payment.
That’s the result of a temporary stay issued Wednesday by the Maryland Court of Special Appeals. The court gave Dimensions Healthcare System until Aug. 10 to say why the payment should be made, and the court then will review that response.
On July 26, Prince George’s Circuit Judge Dwight Jackson issued a temporary injunction requiring the county to pay Dimensions $2 million in the next two weeks.
Jackson issued the judgment based on the likelihood that Dimensions will prevail. A hearing on the matter is slated for Sept. 10.
“If we pay the $2 million and then go in September and win at the merits hearing, there is nothing in place that would allow us to recover the $2 million,” John Erzen, a spokesman for County Executive Jack Johnson, told The Examiner.
“This [stay request] was filed basically so we can wait and see what will happen at the merits hearing and protect taxpayers dollars until we get a final ruling from the courts,” Erzen said.
The $2 million was part of a $9 million emergency appropriation for fiscal 2007 that ended June 30. Prince George’s paid $7 million this spring before telling Dimensions’ board of directors that there would be no more money until four board members resigned.
Prince George’s also had pledged $12 million to keep the system open through June of next year, which Jackson said the county doesn’t have to pay.
Last week, Dimensions officials said they were unsure what getting the $2 million would mean for the system.
But Dimensions spokeswoman Suzanne Almalel said the $2 million plus $12 million form a potential Internal Revenue Service pension-waiver modification, would enable the system to operate at least until January 2008.
dfowler@dcexaminer.com
