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A state panel tasked with finding a company to purchase Prince George's County's troubled hospital system is considering selling off hospitals individually to private companies rather than as a total package, officials said at a meeting Monday.

"We're trying to transfer assets to one or more entities," said Thomas Himler, a member of the Prince George's County Hospital Authority.

The group held its monthly meeting at Laurel Regional Hospital, where officials declined to say whether efforts to sell the hospital system are encountering problems.

Board Chairman Kenneth Glover declined to say whether any potential bidder had signed a letter of intent to formally start negotiations and said breaking up the facilities for sale would depend on what buyers are willing to spend.

"We won't know that until we have a final bid," he said.

The authority plans to find a buyer in time for the Jan. 19 start of the 2009 General Assembly Session.

In October, the group sent out letters to more than 80 health care companies nationwide announcing that the facilities were up for sale. Members had intended for companies with a serious interest in bidding to sign letters of intent at the start of this month, triggering the formal process of sharing financial information and other sensitive documents.

Though Glover would not say if any letters of intent had been signed, authority staff members said companies are still asking about the sale.

"We have received some expressions of interest," said Carolyn Quattrocki, staff member for the authority. "We will continue to work through those with [our] consultants."

Hospital authority members sent out another round of "clarifying" letters a few weeks ago offering to help companies get financing to purchase the hospitals for renovation and redevelopment.

"We wanted to let them know there are resources available," Glover said.

Authority members met in a closed session after Monday's meeting to discuss their procurement and negotiation strategies.

Because they treat high numbers of uninsured patients, Prince George's County Medical Center in Cheverly, Laurel Regional and Bowie Health Center combined have had annual operating losses of $12 million for the last decade, requiring frequent cash injections by the government.

In a deal reached last summer, Prince George's County and Maryland officials pledged to give a new buyer $174 million in assistance to help upgrade and turn the facilities around and to continue paying $12 million in operational help until a new buyer takes over.

Rhonda Reger, an associate professor of strategic management for the Robert H. Smith School of Business at the University of Maryland College Park, said there are several reasons why companies may only be interested in buying one of the county facilities: cost, profitability or operational expenses.

"It could be that they have two, four or six buyers, but none want to pony up the full amount," she said.

The Prince George's County Medical Center in Cheverly is the system's busiest facility but also leads the system in losses. Health officials have noted that the Bowie facility usually turns a profit and that the Laurel facility is just miles away from massive residential developments expected to come from the Base Realignment and Closure plans that will grow nearby Fort Meade.

"There's the possibility that one [hospital] is performing worse than the others. A buyer doesn't want to purchase all three and have to shut one down, so they'll leave that to the government," Reger said. "That would be a public relations nightmare."

Health care companies may also be leery of the increased management costs needed to operate all three facilities, Reger said.

The prospect of selling off individual hospitals concerned some longtime hospital advocates reached after Monday's meeting.

"I don't think that's the preferred option," said Del. Doyle L. Niemann (D-Dist. 47) of Mount Rainier, who helped craft legislation creating the authority last session.

Niemann said he worries that buyers might try to snag more-profitable hospitals, leaving the government to handle remaining facilities. At Prince George's Medical Center, roughly half the patients are uninsured.

"It's hard to see doing [individual sales] and keeping viable options for what's left," Niemann said. "What do you do with ones that aren't as profitable?"

Getting interested buyers may be hampered by the tanking economy. Since September, companies have drastically curtailed major spending as credit markets dried up.

Annette Anselmi, executive director of the Maryland Health and Higher Educational Facilities Authority, said her group would be willing to help bidders borrow money to purchase the hospitals but said the market is difficult.

"We are in horrible credit circumstances," said Anselmi, who noted that interest rates on bonds have risen to 7 or 8 percent where they were once 1 to 2 percent.

"But deals are getting done," she said, calling the markets "tight, expensive, but doable."

If the authority and legislature can't reach a deal on the hospital sale by April, county officials will be left to keep financing the system.

"The time frame is of significance," Rene L. Gelber, a surgeon at the Laurel hospital, told authority members. "Could we even guess at what point we will have a purchaser?"

The hospital authority is scheduled to meet again in Cheverly on Dec. 15.

E-mail Daniel Valentine at dvalentine@gazette.net.