The system agreed to spend $4 million to buy out the hospital's property lease from Charles (Md.) County. The system also said it would invest $2.5 million a year for five years in physician recruiting and support for Civista Medical Center, according to the notice. The medical center closed its fiscal 2010 last June with an operating gain of $1.7 million on $103.8 million in revenue.
However, the deal will not alter the debt structures for Civista Medical Center or UM Medical System, according to the notice. “If and when financial conditions make such steps favorable, UMMS and the hospital may consider making changes to their respective existing debt structures,” the notice said.
Civista Health entered into a management agreement with the Medical System in 2009 and has since made acquisitions to increase its campus by 40%, according to a news release announcing the deal. Three top Civista executives will continue in their roles after the acquisition. Under the management agreement, the UM system's Noel Cervino, Erik Boas and Dr. Mark Dumais became Civista's CEO, chief financial officer and chief medical officer, respectively.