Doctors Community Healthcare Corp., Scottsdale, Ariz., bid twice as much as outside buyers as the investor-owned company seeks to reclaim ownership of four hospitals that it lost when it filed for bankruptcy in November 2002 in Washington. Doctors Community is still managing the hospitals. During the first phase of the auction, approved by U.S. Bankruptcy Judge S. Martin Teel Jr., individual offers were made for each of the four facilities. Taking the highest offer on each hospital, the bids totaled $77.8 million, compared with Doctors Community's opening offer of $155 million for all four properties. The outside bidders and Doctors Community will have the opportunity to raise their bids when the auction continues next week.
Specialty Hospitals of America, Portsmouth, N.H., made the highest bid, $17.6 million, for Hadley Memorial Hospital in Washington, a combination skilled-nursing and long-term acute-care facility. Peter Shin of MedLink Hospital & Nursing Center, Washington, had the highest offer, $5.75 million for troubled Greater Southeast Community Hospital in Washington. MRH Acquisition, Chicago, is offering about $35.6 million for Michael Reese Hospital and Medical Center in Chicago and Health Care REIT of Toledo, Ohio, offered $18.8 million for Pacifica Hospital of the Valley in Sun Valley, Calif. -- by Tony Fong