Md. hospital project: not affordable
The fight between Adventist HealthCare and Holy Cross Hospital to build Montgomery County’s next hospital has taken a new twist: The Maryland Health Services Cost Review Commission thinks that neither health system can afford to erect a new hospital in the northern part of the county, The Washington Business Journal reports.
The Baltimore-based commission on May 14 sent that recommendation — outlined in a public state report — to the Maryland Health Care Commission, the state body that will make the final decision on which of the rival proposals should move forward.
The HSCRC, an entity that publicly discloses information on the costs and financial performance of Maryland hospitals, concluded in its report that “neither hospital can prudently and successfully undertake the financing, construction and successful operation of a new facility at this time.”
The HSCRC cites the impending health care and economic environment, coupled with both hospitals’ attempt to finance both a new standalone hospital plus a major planned capital project, as factors for its recommendation. The commission expects that reimbursement and other pressures will make hospital bond offerings more and more unattractive over the coming decade, “driving up the cost of capital and making projects of this nature unfeasible.”
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