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Maryland General Assembly· HB1540Approved by the Governor - Chapter 797 (Chapter 797)

University of Maryland Capital Region Medical Center - Funding - Repeal of Termination Date, the official text

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WES MOORE, Governor                  Ch. 797

Chapter 797

                   (House Bill 1540)

AN ACT concerning

University of Maryland Capital Region Medical Center – Funding – Repeal of
                                              Termination Date

FOR the purpose of repealing the termination date for certain provisions of law requiring
         that the Governor include in the annual budget bill a certain appropriation for the
         University of Maryland Capital Region Medical Center; altering certain findings by
         the General Assembly; and generally relating to funding for the University of
         Maryland Capital Region Medical Center.

BY repealing and reenacting, with amendments,
         Article – Health – General
         Section 19–2401
         Annotated Code of Maryland
         (2023 Replacement Volume and 2025 Supplement)

BY repealing and reenacting, with amendments,
         Chapter 13 of the Acts of the General Assembly of 2016, as amended by Chapter 19
                  of the Acts of the General Assembly of 2017
         Section 5

         SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:

                   Article – Health – General

19–2401.

(a) The General Assembly finds that:

                  (1) The financial viability of the Prince George’s County Regional Medical
Center and the State’s investment in the Center is contingent on high quality clinical
programs at the existing Prince George’s Hospital Center and the new Prince George’s
County Regional Medical Center;

                  (2) The ability of the University of Maryland Medical System to develop
and maintain high quality clinical programs at the existing Prince George’s Hospital Center
and to transition to the new Prince George’s County Regional Medical Center is contingent
on State operating and capital funding in specific years; AND

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Ch. 797  2026 LAWS OF MARYLAND

                  (3) The ability to protect the State’s investment in the new Prince George’s
County Regional Medical Center is jeopardized by the provisions of the Budget
Reconciliation and Financing Act of 2017, as introduced, that alter both the operating and
capital obligations mandated by Chapter 13 of the Acts of 2016[; and

                  (4) The changed circumstances and the need to protect the State’s
investment require additional support in future years to ensure the financial viability of
the new Prince George’s County Regional Medical Center and ultimately the ability of the
State to end State support for the Center].

                (1) IN 2011, THE STATE, PRINCE GEORGE’S COUNTY, AND THE
UNIVERSITY OF MARYLAND MEDICAL SYSTEM CAME TOGETHER IN A HISTORIC
PUBLIC–PRIVATE PARTNERSHIP TO TRANSITION THE LAST COUNTY–OWNED
HOSPITAL SYSTEM IN THE STATE TO A PRIVATE, NONPROFIT INSTITUTION THAT IS
PART OF THE STATE’S LARGEST ACADEMIC MEDICAL SYSTEM, WITH THE GOAL OF

TRANSFORMING HEALTH CARE DELIVERY IN THE SECOND MOST POPULOUS COUNTY

IN THE STATE;

                (2) THE GOALS ESTABLISHED UNDER THE PARTNERSHIP INCLUDE:

                         (I) GROWING ACCESS TO HIGH–QUALITY CLINICAL PROGRAMS
IN PRINCE GEORGE’S COUNTY;

                         (II) ESTABLISHING A DELIVERY SYSTEM THAT ENABLES
RESIDENTS TO RECEIVE CARE WITHIN PRINCE GEORGE’S COUNTY;

                         (III) ADDRESSING THE DISPROPORTIONATE BURDEN OF
CHRONIC HEALTH CONDITIONS IMPACTING RESIDENTS OF PRINCE GEORGE’S
COUNTY, INCLUDING HEART DISEASE AND CANCER; AND

                         (IV) SERVING AS AN ANCHOR INSTITUTION AND ENGINE OF
ECONOMIC DEVELOPMENT FOR PRINCE GEORGE’S COUNTY AND THE SOUTHERN
MARYLAND REGION;

                (3) KEY TO THE TRANSFORMATION OF CARE IN PRINCE GEORGE’S
COUNTY ARE EFFORTS TO:

                         (I) BUILD HIGH–QUALITY SPECIALTY CLINICAL PROGRAMS,
SUCH AS CANCER, CARDIAC, AND STROKE CARE;

                         (II) EXPAND PRIMARY CARE;

                         (III) ATTRACT AND RETAIN HIGHLY QUALIFIED CLINICIANS; AND

         –2–
           WES MOORE, Governor                                       Ch. 797

           (IV) PRESERVE SERVICES THAT ADDRESS COMMUNITY NEEDS;

                (4) SINCE THE ESTABLISHMENT OF THE UNIVERSITY OF MARYLAND
CAPITAL REGION HEALTH AS PART OF THE UNIVERSITY OF MARYLAND MEDICAL
SYSTEM IN 2017, THE ORGANIZATION HAS SUCCEEDED IN ADVANCING THE VISION
ARTICULATED BY THE HISTORIC PARTNERSHIP BETWEEN THE STATE, PRINCE
GEORGE’S COUNTY, AND THE UNIVERSITY OF MARYLAND MEDICAL SYSTEM TO
TRANSFORM CARE DELIVERY IN PRINCE GEORGE’S COUNTY AND THE SOUTHERN
MARYLAND REGION; AND

                (5) THE UNIVERSITY OF MARYLAND CAPITAL REGION HEALTH
REQUIRES STATE SUPPORT AND INVESTMENT TO CONTINUE ITS MISSION TO
PROVIDE HIGH–QUALITY CARE AND TRANSFORM HEALTH CARE DELIVERY IN
PRINCE GEORGE’S COUNTY AND THE SOUTHERN MARYLAND REGION.

         (b) (1) Subject to subsection (c) of this section, for the purpose of providing an
operating grant to ensure and assist in the transition of a new Prince George’s County
Regional Medical System to the University of Maryland Medical System Corporation:

                           (i) For fiscal year 2018, the Governor shall include in the budget bill
an appropriation of $28,000,000;

                           (ii) For fiscal year 2019, the Governor shall include in the budget bill
an appropriation of $27,000,000;

                           (iii) For fiscal years 2020 and 2021, the Governor shall include in the
budget bill an appropriation of $15,000,000; and

                         (iv) For fiscal [years] YEAR 2022 [through 2028] AND EACH FISCAL
YEAR THEREAFTER, the Governor shall include in the budget bill an appropriation of
$10,000,000.

                  (2) Subject to subsection (c) of this section, Prince George’s County shall
provide a combination of matching funds and other financial assistance to the University
of Maryland Medical System Corporation that constitutes total financial assistance as
follows:

           (i) $15,000,000 annually for fiscal year 2017 through fiscal year

2019; and

           (ii) $5,000,000 annually for fiscal years 2020 and 2021.

(c) The State and county funds described in subsection (b) of this section:

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Ch. 797  2026 LAWS OF MARYLAND

                  (1) Shall be used to support the transition of the Prince George’s County
Regional Medical Center from operation under the Dimensions Health Care System to
operation as a participating institution of the University of Maryland Medical System
Corporation; and

                  (2) May be used only for:

                           (i) Providing increased access to critical health care services for the
region served by the Prince George’s County Regional Medical Center and improving the
quality of the services provided; and

                           (ii) Facilitating cost containment measures to prevent additional
operating losses for the Prince George’s County Regional Medical Center and its affiliated
institutions.

         (d) (1) The Governor shall include in the capital or operating budget bill the
following amounts that are equal to the capital funds committed by Prince George’s County
to be used for the construction of the Prince George’s County Regional Medical Center:

                           (i) $11,300,000 for fiscal year 2018;

                           (ii) $48,000,000 for fiscal year 2019; and

                           (iii) $56,200,000 for fiscal year 2020.

                  (2) Prince George’s County shall provide matching funds of $208,000,000
for the capital construction of the Prince George’s County Regional Medical Center.

   Chapter 13 of the Acts of 2016, as amended by Chapter 19 of the Acts of 2017

         SECTION 5. AND BE IT FURTHER ENACTED, That this Act shall take effect June
1, 2016. [It shall remain effective for a period of 12 years and 1 month and, at the end of
June 30, 2028, with no further action required by the General Assembly, this Act shall be
abrogated and of no further force and effect.]

         SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July
1, 2026.

Approved by the Governor, May 26, 2026.

         –4–
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