The city will lease the facility to CentraCare, and it will be governed by a seven-person board with the city nominating three members subject to CentraCare appointment. Terms of the lease were not listed in a news release or in city documents (PDF), though the St. Cloud Times newspaper reports that the rent will be between $125,000 to $140,000. Representatives from St. Michael's or CentraCare were not available to confirm that figure.
City documents did, however, state that the hospital has an investment portfolio valued at $4.8 million. On July 1, 2012, the city will hand over one-half of that portfolio to CentraCare as “working capital” after covering most outstanding bond obligations as well employee accrued compensation, pensions, profit sharing, vacations and other benefits.
According to the affiliation agreement, the city will terminate the hospital's approximately 175 employees who will need to complete a job application and go through an interview process with interviews being conducted in May and June of 2012. “CCHS –Sauk Centra has been made aware that certain Health Facilities Employees are represented for purposes of collective bargaining by (Service Employees International Union) Healthcare Minnesota,” the agreement said.
In a related deal, CentraCare will take over a St. Michael's facility, the Lakeview Clinic on July 1, 2011, with all employees—including six physicians and two nurse practitioners—becoming employees of the system.