23 Aug IN A RECENT SALE OF SAVANNAH MEMORIAL HOSPITAL TO HCA, IT APPEARS THAT MOST OF THE PROCEEDS ARE DESIGNATED FOR CAPITAL IMPROVEMENTS AND INDIGENT CARE. (SAVANNAH MORNING NEWS, OCTOBER 9, 2017). HOW CAN WE BE SURE THAT WON’T HAPPEN IN ASHEVILLE? WILL WE GET TO SEE THE AGREEMENT BEFORE IT IS FINALIZED? WILL ALL OF THE SALE PROCEEDS GO INTO THE FOUNDATION AND CAN ANY OF THE FOUNDATION FUNDS BE USED FOR FUTURE HCA CAPITAL IMPROVEMENTS OR INDIGENT CARE?
Savannah Memorial Hospital and Mission Health are very, very different organizations so it’s not surprising that the terms of each agreement would be quite different. As part of the Mission Health transaction, the new Foundation will receive all of the proceeds Healthcare and it will not fund capital improvements for HCA; HCA’s capital commitments are above and beyond its purchase price.
The newly formed Foundation will not be controlled or influenced by HCA. A governing board will be created by the current Mission Health Board of Directors, and the new Foundation will be focused exclusively on the current mission of Mission Health: to improve the health of the citizens of western North Carolina and the surrounding region.
The Foundation proceeds will be determined by the ultimate purchase price paid, and any remaining balances within Mission Health after retiring all outstanding debt, payables and adjustments for working capital. It is those total proceeds that will be used to improve the health of the people in western North Carolina and the surrounding region. Funding could be used to meet healthcare needs, but also for social determinants of health including: food programs, housing, education, transportation and more.