Hospital groups urge restoration of $20M private hospital grant program

At the Capital Budget Subcommittee, DLS presented an analysis of the Maryland Hospital Association's private hospital grant program and said FY27 includes $14 million in GO bonds for the program, down from preauthorized levels.

Victoria Martinez, DLS's analyst for the program, summarized the FY27 request and the DLS recommendation to approve the G.O. bond authorizations and amendments. Martinez noted $14 million was proposed for FY27, that most of the 14 selected projects are in progress or complete, and that two projects are delayed with one planned for deauthorization in the CIP.

Jane Krenke, testifying for the Maryland Hospital Association, said the $14 million represents a 30% cut and asked the subcommittee to restore the program to the $20 million level that aligns with statutory/preauthorized guidance. "We're respectfully requesting that the committee restore funding back to that $20,000,000 level," Krenke said, adding that the projects are shovel‑ready and the program distributes limited but critical capital to hospitals.

Kennedy Krieger Institute's chief clinical officer, Dr. Jacqueline Stone, described plans for an outpatient health hub in Prince George's County to expand neurodevelopmental and neurorehabilitation services for children and youth, saying the facility will integrate rehabilitation, behavioral health and trauma‑informed mental health care under one roof.

Michael Finnegan, chief operating officer of Ascension Saint Agnes Hospital, argued the hospital's $4 million emergency department renovation would allow full implementation of an evidence‑based "waterfall" workflow to reduce wait times and improve throughput. Finnegan said the renovation will cut discharge time and that without full state funding the hospital would have to reduce the project scope or delay other local projects.

Committee members asked few questions of the panel and left the request for restoration under consideration.