HB 390
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
First Reader
House Bill 390 (Delegates Johnson and Lisanti)
Health and Government Operations
University of Maryland - Harford Memorial Hospital Closure - Economic Impact
Study
This bill requires the University of Maryland Institute for Governmental Service and
Research to conduct a study on the economic impact of the closure of Harford Memorial
Hospital and the subsequent transfer of its services to another campus under the University
of Maryland Upper Chesapeake Health System. The institute must quantify the economic
impact the closure will have on the City of Havre de Grace and develop a revitalization
plan for the city. By December 1, 2021, the institute must report its findings to specified
governmental individuals and entities. The bill takes effect June 1, 2021, and terminates
June 30, 2022.
Fiscal Summary
State Effect: No effect in FY 2021. General fund expenditures for the University System
of Maryland (USM) increase by approximately $175,000 in FY 2022, under the
assumptions discussed below. Revenues are not affected.
(in dollars) FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
Revenues $0 $0 $0 $0 $0
GF Expenditure 175,000 0 0 0 0
Net Effect ($175,000) $0 $0 $0 $0
Note:() = decrease; GF = general funds; FF = federal funds; SF = special funds; - = indeterminate increase; (-) = indeterminate decrease
Local Effect: The bill does not materially affect local government finances or operations.
Small Business Effect: None.
 Analysis
Bill Summary: The study must consider (1) the impact on existing small businesses in
downtown Havre de Grace, including any displacement from new businesses established
at the new campus; (2) the effect on employment at the existing facility at Harford
Memorial Hospital, including the costs and benefits of relocating to a new facility; (3) the
effect on homeownership in surrounding communities, including on property values and
the Harford County property tax assessable base; and (4) any other potential consequences
for the city from a prolonged vacancy at the hospital site. The revitalization plan must
(1) be consistent with the city’s current comprehensive plan; (2) incorporate the findings
of the study; and (3) include opportunities for public-private investment from the local,
State, and University of Maryland Medical System partnership.
Current Law: There is currently no requirement that USM engage in either an economic
impact study or a revitalization plan for an anticipated hospital closure of
Harford Memorial Hospital. The Maryland Health Care Commission has approved the
Upper Chesapeake Health System’s plan to close Harford Memorial Hospital and replace
it with a new facility in Aberdeen, scheduled to open in 2023.
State Expenditures: USM estimates that the combined cost for the impact study and
revitalization plan is approximately $175,000 to $200,000. Even though the bill takes effect
June 1, 2021, it is assumed that State finances are not materially affected until fiscal 2022.
As no other funding source is specified, this analysis assumes that general funds are used.
Further, based on estimates for similar bills, this analysis also assumes that the lower range
of USM’s cost estimate is sufficient. Accordingly, general fund expenditures for USM
increase by approximately $175,000 in fiscal 2022 to complete both the study and the
revitalization plan.
Additional Information
Prior Introductions: HB 1277 of 2020, a similar bill, received a hearing from the
House Health and Government Operations Committee, but no further action was taken.
HB 1621 of 2018, a similar bill, received a hearing from the House Health and Government
Operations Committee, but no further action was taken.
Designated Cross File: None.
Information Source(s): University System of Maryland; University of Maryland
Medical System; Harford County; City of Havre de Grace; Department of Legislative
Services
HB 390/ Page 2
Fiscal Note History: First Reader - January 15, 2021
rh/vlg
Analysis by: Stephen M. Ross Direct Inquiries to:
(410) 946-5510
(301) 970-5510
HB 390/ Page 3


Statutes affected:
Text - First - University of Maryland - Harford Memorial Hospital Closure - Economic Impact Study: 21-257 []