Terms of a proposed lease of Paynesville (Minn.) Area Health Care System by St. Cloud, Minn.-based CentraCare Health gained attention at a Paynesville board meeting, according to a report by the St. Cloud Times.
The lease terms under consideration would assign tax-exempt status to Paynesville during its 30-year lease, while CentraCare's rent will cover operating expenses and contribute to lowering Paynesville's debt. CentraCare also pledged to purchase an MRI machine and new ambulance, as well as $35 million in capital over 10 years. All 340 Paynesville employees would be rehired without pay or benefit reductions, according to the report. Financial terms were not disclosed.
A board meeting June 20 could determine next steps for an affiliation.
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The lease terms under consideration would assign tax-exempt status to Paynesville during its 30-year lease, while CentraCare's rent will cover operating expenses and contribute to lowering Paynesville's debt. CentraCare also pledged to purchase an MRI machine and new ambulance, as well as $35 million in capital over 10 years. All 340 Paynesville employees would be rehired without pay or benefit reductions, according to the report. Financial terms were not disclosed.
A board meeting June 20 could determine next steps for an affiliation.
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