Province Healthcare Corp., Brentwood, Tenn., said last week that it will lease 144-bed county-owned Bolivar Medical Center, Cleveland, Miss., under a $26.4 million, 40-year pact. Bolivar, with annual revenue of about $32 million, is managed by Quorum Health Resources, also of Brentwood. After the deal is completed April 15, Province will own or lease 16 acute-care hospitals and manage 48.
Illinois Masonic Medical Center, Chicago, and eight-hospital Advocate Health Care, Oak Brook, Ill., are negotiating a deal to consolidate the services of 544-bed Illinois Masonic with Advocate's 301-bed Ravenswood Hospital Medical Center, also in Chicago. Discussions began in late 1999, and a merger could be completed by July 1.
A U.S. Bankruptcy Judge in Wilmington, Del., will rule May 5 on public bids for two Cleveland-area hospitals owned by Primary Health Systems, Wayne, Pa. The judge ordered a public auction of the hospitals to replace a privately negotiated deal between PHS and the Cleveland Clinic Foundation (April 3, p. 24). The clinic has agreed to keep its $62.7 million offer for the hospitals, a surgery center and related facilities on the table during the process. The clinic had originally bid on the hospitals--Saint Michael Hospital and Mount Sinai Medical Center East--as closed facilities, because its interest was only in operating the surgery center. Clinic officials said they would lower their offer if another potential buyer will keep the two hospitals open.
Community Health Systems late last month completed its purchase of Northeastern Regional Hospital, a 54-bed stand-alone facility in Las Vegas, N.M., after approval of the deal by New Mexico Attorney General Patricia Madrid. The Brentwood, Tenn.-based company will lease the hospital's existing building for up to seven years while it completes construction of a replacement facility. The deal converted the facility to for-profit status; proceeds from the sale of working capital will go to a charitable trust. The purchase price was not disclosed.
University Community Hospital, Tampa, Fla., late last month signed a letter of intent for a 40-year lease of 168-bed Helen Ellis Memorial Hospital, Tarpon Springs, Fla. As part of the deal, UCH would make an upfront payment of $24 million to pay off Helen Ellis' debt. Helen Ellis lost $6 million in its fiscal year that ended Sept. 30. A lease agreement is expected to be negotiated between UCH and the city of Tarpon Springs, which owns the property, by the end of April. The lease must be approved by the City Council and by voters in a referendum.
Resurrection Health Care Corp. and Catholic Health Partners, both based in Chicago, said late last month that they ended partnership discussions by mutual agreement. A CHP official said the type of partnership envisioned no longer made sense. A combined organization would have owned seven hospitals. Boards from both institutions met three times since the merger talks were announced in January (Jan. 31, p. 4). Both systems are undergoing major changes. CHP is selling a hospital, and Resurrection recently bought some long-term-care facilities.
Columbia/HCA Healthcare Corp., Nashville, and Sacred Heart Health System, Pensacola, Fla., have settled their differences over Sacred Heart's construction of a $39 million, 50-bed hospital in Santa Rosa Beach, Fla. (Feb. 21, p. 22). Columbia hospitals in Fort Walton Beach, Fla., and Niceville, Fla., had challenged the plans, but an agreement between the parties will allow Sacred Heart to move forward. Details of the agreement were not disclosed. Construction on the hospital is expected to begin next year.
The hospital authority board of Tattnall Memorial Hospital in Reidsville, Ga., voted to discontinue inpatient admissions, effective at noon on April 5, and to suspend hospital operations at 5 p.m. on April 7. The hospital was able to remain open until that time after the Tattnall County board of commissioners agreed two weeks ago to a request for $148,000, which it had denied on Feb. 28 (March 6, p. 40). Part of the money was to keep the 40-bed public facility open long enough to evaluate outside purchase proposals. The authority board is weighing three proposals presented March 27, which include purchase, lease and management agreements, by Family Care America Health, Accord Healthcare and Sumeru Healthcare Group. The balance of the $148,000 was used to meet last week's payroll obligations.