The District of Columbia Council has approved a measure that authorizes the use of $79 million in public funds to cinch the sale of 303-bed Greater Southeast Community Hospital to Specialty Hospitals of America.
In September, Specialty Hospitals entered into a tentative agreement with district officials to purchase the beleaguered hospital from Envision Hospital Corp., Scottsdale, Ariz. At the time, Specialty Hospitals said it needed some $87 million in city funding to bring the facility up to proper quality standards.
The agreement in principle between district Mayor Adrian Fenty and Specialty Hospitals would provide a $20 million loan for working capital, which would be paid back over 10 years and secured by a lien on the hospital building.
The measure also includes $30 million for equipment, subject to a variety of performance measures and a stipulation that the city will receive half of any proceeds from the future sale of the hospital by Specialty Hospitals. It also includes $29 million in acquisition costs, the majority of which would be paid to local healthcare vendors, including doctors and nurses who have not been paid for their services by the current owner.
Fenty is expected to submit the finalized deal to the council next week. -- by Matthew DoBias
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