Washington County Memorial “determined that operating without benefit of affiliation resulted in it paying premium prices for supplies and other higher operational costs with little market strength to negotiate better deals and higher reimbursement rates with various third-party payers,” the hospital's bankruptcy filing said.
The hospital started shopping around for affiliation partners again in 2007, including discussions with Ascension's St. Vincent Health, which owns 25-bed St. Vincent Jennings Hospital, a critical-access hospital in North Vernon, Ind. St. Vincent agreed to the asset purchase only if the hospital's title were offered free and clear through bankruptcy, court records say.
Under the agreement approved by the bankruptcy judge last month, St. Vincent is buying the right to lease the hospital and several clinics for $500,000 per year, with the option to purchase the property for $3.5 million less any rents paid.
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