System secures financing
* Five-hospital Doctors Community Healthcare Corp., Scottsdale, Ariz., said it has secured $60 million in debtor-in-possession financing from GE Capital, and GE will take over the company's $14 million mortgage on 286-bed Michael Reese Hospital and Medical Center, Chicago. The deal must be approved by a bankruptcy court. Doctors Community CEO Paul Tuft said the money would be used for capital improvements, new equipment and facility repairs. Meanwhile, corporate staff will move to less-expensive headquarters as part of cost-saving measures imposed by the court. Doctors Community filed for Chapter 11 bankruptcy protection last November shortly after the collapse of its chief lender, National Century Financial Enterprises, Dublin, Ohio. Tuft confirmed that the company has spoken with Vanguard Health System, Nashville, about purchasing Michael Reese.
Surprise could cost hospital
* Greater Southeast Community Hospital, Washington, could lose its accreditation after a surprise inspection by the Joint Commission on Accreditation of Healthcare Organizations determined that the hospital had not adequately addressed quality issues. The JCAHO is expected to review the matter March 19. Inspectors earlier this month found problems with building maintenance, leadership, planning and quality control at the 303-bed hospital, owned by Doctors Community Healthcare Corp., Scottsdale, Ariz.
Kan. AG appeals ruling
* Kansas Attorney General Phill Kline last week appealed a judge's ruling allowing the $1.1 billion sale of 13-hospital Health Midwest, Kansas City, Mo., to HCA, Nashville. There is a March 31 deadline to close the deal. Kline said he appealed to make sure certain issues are reviewed, not to delay the sale intentionally. Health Midwest, meanwhile, has appealed the court's ruling that the health system shouldn't merge its Kansas and Missouri assets.