A bidding conference and U.S. Bankruptcy Court hearing on the fate of five of New American Healthcare Corp.'s eight hospitals have been pushed back, tentatively to the week of July 10. The auction and hearing were originally scheduled to be wrapped up by June 27. Thomas Singleton, New American's president and chief executive officer, said the company requested the delay to allow some potential bidders to obtain financing and to resolve an undisclosed problem at one hospital so the company can sell it for a higher amount. The auction will allow potential bidders to present alternatives to a definitive agreement the company had signed with Accord Healthcare, a corporation founded by two New American executives, to buy five hospitals and New American's corporate assets for $12.5 million plus working capital. Two of the three other hospitals have buyers, and New American has a letter of intent from a potential buyer for the last hospital.
After more than a year of negotiations, the Idaho Corporation of Benedictine Sisters has transferred ownership of its 65-bed St. Benedicts Family Medical Center, Jerome, Idaho, to 287-bed St. Alphonsus Regional Medical Center, Boise, Idaho, and its owner, Trinity Health, Novi, Mich. Day-to-day operations of rural St. Benedicts, however, will be contracted to Benedictine Health System, Duluth, Minn.
University of Maryland Medical System, Baltimore, and North Arundel Health System, Glen Burnie, Md., will complete their merger July 1, creating Maryland's third largest system with nearly $900 million in annual gross patient revenue and a total of 1,100 beds. Three-hospital UMMS will take control of North Arundel's two hospitals. The deal was first announced in January (Jan. 17, p. 4). Financial terms were not disclosed.
In a two-step deal worth more than $10 million, North Mississippi Health Services, Tupelo, last week agreed to buy its first hospital in neighboring Alabama, 57-bed Marion Baptist Medical Center in Hamilton. North Mississippi operates five other hospitals and more than 40 medical clinics in three states. It would pay Birmingham, Ala.-based Baptist Health System about half of the $6 million that Baptist has spent on capital improvements at Marion Baptist since the system began leasing the facility from the Marion County Healthcare Authority in 1995. North Mississippi would invest another $7.5 million over five years in capital improvements, including the construction of an adjoining physician office building and outpatient facility, in exchange for the hospital's property and assets from the healthcare authority. The purchase also includes a 69-bed nursing home, a home health agency, a wellness center and five physicians' offices. The sale is expected to close Oct. 1.