NAPOLEONVILLE, La.-The board of Assumption General Hospital and the Assumption Parish Police Jury agreed to sell the 60-bed public hospital and a satellite clinic for $1 million in cash to Our Lady of Lake Regional Medical Center, Baton Rouge, La. The sale price also includes 50% of all profits up to $1 million earned at Assumption in the next seven years, minus the projected cost of repairs to facilities. The proposed sale must win approval by a majority of Assumption Parish voters in a November election. As part of the deal, Our Lady of Lake promised to keep open the emergency room, home health and X-ray services for at least five years.-Associated Press
HUNTINGTON, W.Va.-St. Mary's Hospital in Huntington and a group of 38 primary-care physicians have formed a for-profit company to pursue service contracts with insurers and employers. Under the arrangement, the 440-bed, not-for-profit hospital and the physicians, known collectively as Huntington Internal Medicine Group, sought and obtained state approval to convert the group practice to a for-profit public company from a for-profit private corporation. According to J. Thomas Jones, St. Mary's chief executive officer, the hospital's parent corporation, Pallottine Health Services, bought the practice's hard assets, such as building and equipment, for about $4 million and is leasing them back to the new company.