An Adams County board has voted to file a letter of intent with a potential buyer for Natchez (Miss.) Regional Medical Center, according to a Natchez Democrat report.
Because of a confidentiality agreement, the hospital — which is owned by Adams County — cannot disclose who the possible buyer is or the details of the letter of intent at this time, according to the report. However, Walter Brown, the Natchez Regional board's attorney, told the Democrat the letter includes terms concerning a purchase price, the safeguarding of Natchez Regional's employees and physician recruitment. He also said the letter requires acceptance by next Tuesday.
Natchez Regional filed for Chapter 9 bankruptcy last month. Natchez Regional CFO Charles Mock said the liabilities of the 179-bed hospital exceed its assets by $3 million. Declining reimbursements from Medicare and Medicaid have contributed heavily to the hospital's financial problems. However, at the time of the bankruptcy filing, hospital officials still believed the facility would be sold. Adams County, which owns the hospital, failed in its last attempt to sell Natchez in 2008, with the hospital declaring bankruptcy for the first time the following year.
This past September, three healthcare organizations (whose identities were not disclosed) agreed to take part in a "stalking horse" bidding process concerning the sale of Natchez Regional, and the hospital reportedly received an offer from a potential buyer in January, although details of the offer were not disclosed.
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