On Wednesday, stockholders in the company that holds the lease for Midwest Regional Medical Center approved the sale of the company to Community Health Systems, Inc.
Health Management Associates stockholders approved the sale by an overwhelmingly 98 percent although just 70 percent was required. The deal is expected to close at the end of the month.
Mayor Jack Fry said the next step in the process is the return of Request For Proposals, which are due this Friday, Jan. 10. This will give the Authority an idea if any other corporation is interested in leasing MRMC, the mayor said.
The city provided RFPs to four Oklahoma City metro hospital corporations, including Mercy, St. Anthony’s, OU Medical and Integris Baptist, City Attorney Kathy Bolles said. A fifth RPF also was provided to Community Health Systems, Inc.
The RPFs will be submitted directly to the consultant firm, Healthcare Strategy Group, out of Louisville, Ken., Bolles said. During a Nov. 26 regular meeting, the Authority approved the use of $350,000 in Authority funds to handle the hospital’s lease situation for legal, appraisal and consultant services.
Last October, Midwest City voters granted the Authority access to up to $50 million from the Compounded Principal in the Authority’s account to negotiate a new hospital lease for the hospital.
Bolles commented that a Jan. 16 date has been proposed by city staff for a special meeting of the Authority to discuss the RPFs received, if any.
A proactive stance
Fry said this Friday is the day the city will know if there are any other real players interested in taking over the hospital’s lease. If no RFPs are submitted, the Authority will continue discussion and negotiation with CHS, Fry said.
On Thursday, Jan. 2, Fry, along with City Manager Guy Henson and Russell Smith flew to the CHS headquarters in Nashville, Tenn. for a five-hour long meeting. The city’s delegation was joined by two members of the consultant firm the city hired.
Fry described the meeting as a "good conversation" and recalled CHS officials saying they were confident the HMA stockholders would approve the sale to CHS the very next week.
The Authority is taking this hospital lease process very seriously, Fry said, by asking for references from all interested corporations and checking up on them.
Bolles said the entire RPF process was interesting because the city is asking for a "very large commitment in a very short period of time" from hospital systems outside of CHS. She is referring to the 25 day window period the Authority has to negotiate a new hospital lease, which is outlined in the city’s contract with HMA, who will soon be merged with CHS. The contract states that in the case of a new third party lessee, the Authority could either approve the new lessee or find a different one, but only within a 25-day window.
"What we are asking of them is somewhat of a leap of faith to come in and take over," the attorney said.
Watch EastWord News for more updates on the hospital lease situation.
