Venice (Fla.) Hospital last week signed a letter of intent to sell the 267-bed facility to Bon Secours Health System, Marriottsville, Md., for an undisclosed amount.
In selecting eight-hospital Bon Secours, Venice officials rejected a confidential bid from Columbia/HCA Healthcare Corp. and a $120 million offer from 657-bed Sarasota (Fla.) Memorial Hospital.
"The board liked Bon Secours' culture, charitable mission, financial depth and management team," said Jack Norman, Venice's president and chief executive officer.
According to Norman, another factor that appealed to Venice was that Bon Secours also agreed to develop a four-hospital managed-care network that included Venice; Sarasota Memorial; Bon Secours-St. Joseph Hospital in Port Charlotte, Fla.; and Lee Memorial Hospital in Fort Myers, Fla.
The network is expected to compete with Columbia, which owns eight hospitals in the southwest Florida market from Manatee to Lee counties.
In addition, Norman said, Bon Secours agreed to allow Venice and Sarasota Memorial to continue to develop joint venture programs.
Pending a 60-day "due diligence" review and regulatory approvals, the closing is expected later this summer, Norman said.
Proceeds from the sale will be placed in an independent foundation, he added.
Forty-five of 1,280 employees are expected to be laid off this month, Norman said. But further management changes are not expected for at least another year.
Venice Hospital earned net income of $10.1 million on total revenues of $93.7 million in 1994, according to HCIA, a Baltimore-based healthcare information company. The hospital has total assets of $229.8 million and total liabilities of $144.1 million, HCIA said.