The CEO of Bay Medical Center in Panama City, Fla., has recommended the public hospital become private and for-profit through a joint venture with LHP Hospital Group and Sacred Heart Health System in Pensacola, Fla., according to a News Herald report.
The proposition was delivered to the BMC board of trustees yesterday, when CEO Steven Johnson said the joint venture could result in a 40-year lease. The structure would include an 80-20 split with LHP and SHHS, according to the report.
LHP would provide funding for the upfront lease payment for the fair market value of the hospital, estimated to be approximately $155 million. The payment would be used to pay off the debt of the hospital, which is about $115 million, according to the report.
The hospital is operating at a loss of $600,000 for the month of July, with a year-to-date loss of approximately $3 million.
The BMC board must wait 30 days before voting on the recommendation, allowing time for public input.
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The proposition was delivered to the BMC board of trustees yesterday, when CEO Steven Johnson said the joint venture could result in a 40-year lease. The structure would include an 80-20 split with LHP and SHHS, according to the report.
LHP would provide funding for the upfront lease payment for the fair market value of the hospital, estimated to be approximately $155 million. The payment would be used to pay off the debt of the hospital, which is about $115 million, according to the report.
The hospital is operating at a loss of $600,000 for the month of July, with a year-to-date loss of approximately $3 million.
The BMC board must wait 30 days before voting on the recommendation, allowing time for public input.
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