A partnership that includes about 15 local physicians and Restoration Healthcare, Clinton, Tenn., is purchasing 46-bed Woods Memorial Hospital, Etowah, Tenn., for $9 million, McMinn County Mayor John Gentry said. The proceeds will wipe out the hospitals debt and leave $4 million available to a new healthcare foundation, Gentry said. County commissioners approved the sale this week, and the deal may close as soon as the end of the month, he added.
The prospective new owners have agreed to spend $4 million or more on capital expenditures at the hospital in the first three years of ownership, Gentry said. The county decided to sell the 40-year-old hospital and spend its capital on other needs, such as law enforcement and education, he said. Restoration Healthcare is a for-profit started by Steve Clapp, a former executive with Baptist Health System of East Tennessee, Knoxville. Clapp said the deal would be his company's second hospital. The Woods Memorial deal, like its current hospital, is structured as a joint venture with physicians, he said. -- by Vince Galloro