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Maryland Hospital Association urges full funding for 22 capital grants as DLS recommends $5M cut
Summary
The Maryland Hospital Association told the Capital Budget Subcommittee it supports full funding for 22 hospital capital projects in the governor's FY2026 capital budget and urged the committee to reject a DLS recommendation to cut $5 million that would remove projects with state shares below 15%.
Department of Legislative Services analyst Victoria Martinez told the Capital Budget Subcommittee the capital budget proposes funds for the Maryland Hospital Association (MHA) private hospital grant program and shows "$22,000,000 and go bonds for 22 projects" in fiscal 2026. Martinez said DLS recommends reducing the fiscal 2026 request by $5,000,000 to remove 12 projects in which the state share is less than 15 percent; doing so would lower the total appropriation to $17,700,000.
Jane Krenke, speaking for the Maryland Hospital Association, said MHA "is in strong support of these 22 hospital projects, totaling $22,600,000" and asked the subcommittee to maintain the funding levels recommended by the governor and the Hospital Bond Project Review Committee. Krenke said the 22 projects support maternal health, primary care access, surgical services and improvements in behavioral health crisis environments, and argued a $5 million reduction would harm small, independent and rural hospitals.
Martinez told the committee that 12 recommended projects had state shares lower than 15 percent and that some projects' state share percentages were as low as 0.7 percent; DLS questioned whether funding projects with very small state shares demonstrates meaningful prioritization. Krenke and members of the committee discussed the role of a state contribution in helping hospitals raise other funds; Krenke said even small seed amounts help hospitals secure community and private support and emphasized the "shovel ready" requirement for projects in the program.
Krenke also noted three amendments in MHA testimony for specific hospitals (Atlantic General, Luminis Health Doctors Community Hospital, and Adventist Healthcare Shady Grove Medical Center) and asked the committee to reject the DLS recommendation.
Ending: Committee members asked clarifying questions about prioritization and fundraising; the subcommittee did not take an on‑the‑record vote at the hearing.
