Montana Attorney General Tim Fox has approved the sale of Community Medical Center in Missoula, Mont., to a joint business venture between Billings (Mont.) Clinic and Brentwood, Tenn.-based RegionalCare Hospital Partners.
The sale price is $74.8 million, which is larger than the cash price announced earlier this year. That price could change before the deal officially closes, "but it will not be less than the fair market value range," according to a news release.
Under the sale agreement, the buyer must "maintain essential services currently offered at CMC" and "continue providing charity care to the indigent and uninsured pursuant to CMC's present charity care policy or one substantially similar," the release reads.
Additionally, the buyer must spend at least $40 million on physician and provider recruitment and $60 million on "other strategic initiatives" over the next decade, as well as "contribute 3 percent annually of the hospital's net revenue for routine capital expenditures," according to the release.
Since CMC is a nonprofit, proceeds from the sale "must be used for purposes closely aligned with CMC's mission to provide healthcare services to residents of Missoula and the surrounding area," according to a news release.
Last month, CMC proposed a plan for distribution of the sale money to the University of Montana Foundation and the new Community Hospital Legacy Foundation. The attorney general's office is still reviewing the plan.
The deadline for review of the plan is Feb. 27, according to a news release.
RCHP/Billings will own and operate CMC's facilities once the deal is closed.
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