Negotiations between BJC Medical Center and a Tennessee company for the purchase of the medical center appear to be progressing.
Reporting at Monday’s meeting of the BJC Medical Center Authority, chairman Charles Blair said the facility hopes to have “something fairly close to a final draft” of the agreement “by the middle of the week.”
The chairman of the BJC Medical Center Authority says negotiations for the acquisition of the facility by a Tennessee company are on track.
Hospital sale remains on track
Restoration Healthcare proposes an alliance with some local backers to acquire the financially troubled hospital and nursing home which last month revealed that it had overstated collectable accounts receivable by $3.8 million over two years.
“There are a few outstanding issues,” Blair cautioned, “but none of them seem to be deal-killing. They are operational items more than anything.”
Blair said attorneys for both groups hope to be ready for a meeting with the Georgia attorney general the week of Aug. 10. His approval of any agreement is necessary.
“That’s really where the process starts,” Blair said. “We can’t sign until the attorney general goes through the process. We’ll have an agreement we have agreed on, but there’s no official action that can be taken until the attorney general passes whatever they have to do.”
Finances Improving?
Meanwhile, chief finance officer Ray Leadbetter indicated that the facility’s financial picture is improving.
He projected the facility’s loss for the just-completed fiscal year at $818,000 - a $200,000 improvement, he said, since Jan. 1.
“In the first six months of the year we operated at a $1 million loss. For the last six months we made about $200,000,” he said. “The $818,000 loss represents a $2,099,000 improvement from the prior year’s restated financial loss.”
For June, he said, the hospital earned a $52,000 profit and the nursing home a $78,000 profit.
“There are a few outstanding issues,” Blair cautioned, “but none of them seem to be deal-killing. They are operational items more than anything.”
Blair said attorneys for both groups hope to be ready for a meeting with the Georgia attorney general the week of Aug. 10. His approval of any agreement is necessary.
“That’s really where the process starts,” Blair said. “We can’t sign until the attorney general goes through the process. We’ll have an agreement we have agreed on, but there’s no official action that can be taken until the attorney general passes whatever they have to do.”
Finances Improving?
Meanwhile, chief finance officer Ray Leadbetter indicated that the facility’s financial picture is improving.
He projected the facility’s loss for the just-completed fiscal year at $818,000 - a $200,000 improvement, he said, since Jan. 1.
“In the first six months of the year we operated at a $1 million loss. For the last six months we made about $200,000,” he said. “The $818,000 loss represents a $2,099,000 improvement from the prior year’s restated financial loss.”
For June, he said, the hospital earned a $52,000 profit and the nursing home a $78,000 profit.
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