Sayre, Pa.-based Guthrie Clinic is planning to borrow $140 million to acquire Binghamton, N.Y.-based Our Lady of Lourdes Memorial Hospital system, WNBF reported Dec. 7.
A public hearing is scheduled for Dec. 8 on the issuing of tax-exempt bonds to the hospital to help fund the acquisition, according to the report.
Plans for the sale were revealed in June and come on the heels of accelerated operating losses in fiscal 2023 for the five-hospital system, which reported a $72 million operating loss, with $50 million of the loss attributed to staffing issues and contract labor costs.
"Based on the investments made in quality, safety, growth, and digital transformation, we are very optimistic about The Guthrie Clinic's strength and financial performance in 2024," Edmund Sabanegh, MD, president and CEO of Guthrie Clinic, told Becker's in a statement. "We are confident in these improvements and eagerly anticipate serving the larger Binghamton community, on the heels of these critical investments and the exciting acquisition of Lourdes Hospital and its related services."
Guthrie has 6,500 caregivers, 700 of which are physicians and advanced practice providers. All Lourdes services, facilities, providers and associates will be included in the transition from its current owner, St. Louis-based Ascension, according to a June 8 release on the acquisition. WNBF reports the sale is expected to be complete by Feb. 1.