St. Rose Hospital, Hayward, Calif., won approval from the state attorney general to disaffiliate from Via Christi Health System, Wichita, Kan., at a cost of $22 million, according to the hospital's president and chief executive officer, Michael Mahoney. Via Christi wanted to divest 172-bed St. Rose for strategic and financial reasons but was unable to find a buyer that met the needs of the system and hospital, Mahoney said. Consequently, St. Rose officials decided to convert the hospital to an independent community facility no longer affiliated with the Roman Catholic Church, he said. St. Rose is arranging financing for the purchase through a commercial lender. The hospital has been profitable for the last three years with an operating margin of 1% to 1.5%, Mahoney said.
In other transactions, Medical Properties Trust, Birmingham, Ala., paid $20.75 million for the ground lease interest and all buildings and improvements of Northern California Rehabilitation Hospital, Redding, according to a news release from the real estate investment trust. Vibra Healthcare, which leases the facilities, was the seller. -- by Paul Barr