SAVANNAH, GA (WTOC) - The sale of Memorial Health to HCA, the Hospital Corporation of America, is moving along.
The deal was initially expected to be closed at the turn of the new year. That decision was delayed until late January. On Monday, the hospital board announced they had approved elements for the transaction.
Memorial board members and the Chatham County Hospital Authority approved the sale of the non-profit hospital to the for-profit organization, HCA, for $710 million.
The board shared a brief statement after the conclusion of the meeting Monday afternoon:
Here is a reminder of what was laid out in the letter of intent that the Hospital Corporation of America sent to Memorial Health Board Members and the Chatham County Hospital Authority on April 19, 2017.
HCA is offering a $710 million package - $430 million of that would pay off the bonds and debt. They are offering $280 million over the next 10 years for capital expenditures and improvements - which includes the Children's Hospital and development in Pooler. All other proceeds will go to a Hospital Authority Trust Fund - money that the hospital will no longer benefit from because it will no longer be a non-profit organization. Instead, they'll have to give it other organizations.
A for-profit organization like HCA does not have to guarantee certain services but charity care for the uninsured would be continued for at least five years. Core services like Level 1 trauma and neonatal care would be continued for at least the first 10 years. And key services like oncology and cardiovascular would be continued for at least five years.
HCA also intends to continue its affiliation with Mercer University School of Medicine and is looking to potentially expand its facilities in the southeast.
The existing name of Memorial University Medical Center and its affiliates are expected to remain the same. HCA also plans to offer employment to all the employees of the system - other than senior management.