The board of trustees at Henry County Medical Center in Paris, Tenn., has unanimously approved a lease agreement with West Tennessee Healthcare: a public medical group with more than 90 locations across Missouri and Tennessee.
Now, it's up to the county commission that owns the hospital to ink the proposal, WKMS reported April 5.
James Ross, president and CEO of West Tennessee Healthcare, laid out the proposed 40-year lease agreement at a March 28 meeting. The company would assume all of Henry County Medical Center's assets, except operations of the Henry County Healthcare Center and ambulance service, according to the Paris Post-Intelligencer. It would also assume the hospital's liabilities, except for its pension funding and existing debt, which would revert to the county.
West Tennessee Healthcare would assume responsibility for any debt incurred after the lease begins, and the county would receive a lease payment equal to the hospital's current debts — which are roughly estimated between $20 million and $30 million, per the newspaper. The county would be able to pay the hospital's existing debts without incurring additional costs over the 40-year lease period.
West Tennessee Healthcare also hopes to reopen the hospital's obstetrics department, which shuttered in September due to financial challenges.
John Tucker, CEO of Henry County Medical Center, is in support of the board's recommendation.
"[West Tennessee Healthcare] really geographically makes the most sense and we really appreciate their culture and their dedication to trying to keep rural healthcare local," he said.
Representatives from West Tennessee Healthcare plan to attend the Henry County Commission meeting on April 15, the radio station reported.
The hospital did not return Becker's request for further comment.