The Adams County Board of Supervisors has unanimously approved the sale of Natchez (Miss.) Regional Medical Center to Community Health Systems, based in Franklin, Tenn., according to a Natchez Democrat report.
Under the agreement, CHS will pay $18 million in the sale — $10 million in cash up front and $8 million in prepaid city and Adams County ad valorem taxes, according to the report. CHS signed a letter of intent in April to buy the hospital.
The asset purchase agreement still requires the signature of the buyers and approval by a federal bankruptcy court. Natchez Regional filed for Chapter 9 bankruptcy in February. Natchez Regional CFO Charles Mock said the liabilities of the 179-bed hospital exceeded its assets by $3 million. Declining reimbursements from Medicare and Medicaid have contributed heavily to the hospital's financial problems.
Although CHS is the likely purchaser, its acquisition of Natchez Regional isn't guaranteed, according to the report. Other bidders can match CHS' offer, and county residents can also petition to take the sale of the public-owned hospital to a vote. In a "stalking horse" bidding process county supervisors approved in June, a qualified bidder would have to top CHS' offer by at least $1 billion, and every subsequent bid would have to outbid the previous one by at least $100,000. If CHS successfully acquires the hospital, it will effectively control the local market, since it already owns Natchez Community Hospital.
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