Valley Health System, a Hemet, Calif.-based hospital district, agreed to sell its three hospitals, medical office buildings and a skilled-nursing facility to Select HealthCare Solutions, a Del Mar, Calif.-based hospital developer.
Valley Healths board voted unanimously to accept Select HealthCares $135 million offer, which does not include acquiring Valley Healths $85 million in bond debt, said Matthew Cutler, Select HealthCares president and chief executive officer. The parties are expected to sign a definitive agreement by July 9, he said.
However, the deal is contingent on winning a majority in a public vote, which will be held within 120 days. The vote will be open to voting age adults in the 882-square-mile district, which has a population of 360,000, according to the district. Cutler said the offer includes a $12 million deposit, of which $7.5 million is nonrefundable.
If the public vote fails, Select HealthCare will put the remaining deposit toward buying one of Valley Healths three hospitals101-bed Moreno Valley (Calif.) Hospitala smaller deal that does not require public approval. The remaining two hospitals are: 395-bed Hemet (Calif.) Valley Medical Center and 84-bed Menifee Valley Medical Center, Sun City, Calif. -- by Melanie Evans