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Washington's Whidbey General Hospital Rejects Capella Healthcare's Proposal

The board of commissioners of Coupeville, Wash.-based Whidbey General Hospital has unanimously rejected a proposal by Franklin, Tenn.-based Capella Healthcare to buy the hospital, according to a Whidbey News-Times report.

Although Capella did not make a specific proposal, they suggested leasing the facility from the hospital district, purchasing it or operating it as a joint venture with 50-50 ownership. The for-profit company said it could improve the hospital's capital, save money through purchasing power with vendors and suppliers, expand services, and provide money for local jurisdictions through taxes.

Capella's proposal precedes the conclusion of a vote for a $50 million bond to fund construction at Whidbey General Hospital. According to the report, board members were concerned the presentation would reduce the chances of the bond passing.

Richard Charbonneau, vice president of business development for Capella Healthcare, said Capella would still be interested in Whidbey General Hospital if the bond passed, though a for-profit company cannot own tax-exempt bonds.

Read the Whidbey News-Times report on Whidbey General Hospital's rejection of Capella Healthcare's proposal.

Related Articles on Capella Healthcare:
Capella Requests to Make Offer to Washington State's Whidbey General

Capella Healthcare May Bid For Rhode Island's Landmark Medical Center

Tennessee's Capella Healthcare Names Richard Charbonneau Vice President of Development



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