University Of Maryland Medical System Seeks Rate Hike

The University of Maryland Medical System -- under scrutiny for financial deals with board members -- wants to charge patients more for services at its downtown Baltimore hospital.

The hospital's request for a 4.5 percent rate hike was filed in January, the 11 News I-Team has learned.

Then came the controversy over the medical system's dealings with board members, including Mayor Catherine Pugh.

Now the hospital has to push its request for a rate hike in the face of intense scrutiny of the system's finances. In its application, the University of Maryland Medical Center said it needs higher rates, in part, to meet rising costs of care of increasing numbers of patients. It also cites security costs, which have more than doubled since the civil unrest of 2015, the application said.

"UMMC is requesting a permanent revenue increase of $75 million or a 4.4 percent rate increase to be effective April 1, 2019, needed to 'right-size' the revenue base ... and ensure UMMC will continue to ... act as a safety net provider for the west Baltimore community, and continue to provide transformative healthcare techniques in the ever changing healthcare landscape," the application for rate increase states.

The rate hike request is before regulators amid turmoil in the University of Maryland Medical System, which owns and operates the hospital.

Pugh resigned from the UMMS board following questions about her book deal with the system. Two other board members who had business deals with the system have also resigned, and four have stepped off temporarily. The system's CEO is also on leave.

Baltimore state Sen. Jill Carter said the timing of the rate hike request couldn't be worse.

"There's an independent company looking at the deals that have been done with board members and UMMS. There's also a call under our legislation for an audit, and I think they should probably hold off until we understand exactly how the money is being spent and to make sure these costs are justified," Carter said.

In a statement, a representative for the medical center said: "The attention now placed on the UMMS Board does not change UMMC's unique mission and the rate increase is necessary to ensure UMMC can continue caring for highly complex patients."

One part of the hospital's budget has risen sharply. Administration costs are up 88.5 percent since 2014, which is a higher rate of increase than Johns Hopkins. By comparison, Hopkins' administration costs have risen 61 percent. Those costs include hospital management.

State regulators said the medical center, which includes Shock Trauma, deals with more complicated cases, which could influence that hospital administration cost.

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WBAL-TV President and General Manager Dan Joerres serves on the Shock Trauma Board of Visitors.