How the hospital proposals compare
Pinnacle Healthcare Development
Physician-led group based in Leawood, Kansas
Value: $57.5 million; $32.5 million at closing, assumes no debt, capital leases.
Capital improvement: $3 to $5 million a year committed toward capital improvements for a five-year period. Pinnacle HD, the hospital board, management and physician leadership will identify priorities.
Service expansion: Grow primary care base through recruitment and alignment with existing primary care base. Surgical specialists and services will be expanded to accommodate additional cases and surgical specialty strength.
Continuity of service: Assure a viable acute care hospital, provide additional service offerings, expand service area
Quality of Care: Highest standards of quality and patient satisfaction will be sursued relentlessly
Physician alignment: PinnacleHD will develop an integration/alignment model with the board and medical staff to reinvigorate physician loyalty and strengthen current relationships.
Source of funds: PinnacleHD will make suitable indication or confirmation of available capital source upon acceptance of letter of intent
Liabilities: Buyer will not assume any unusual liabilities, including legacy pension liabilities or guarantees of indebtedness, extraordinary past due payables or payables for good goods and services incurred outside the normal course of business. Offer assumes company will have a normalized level of net working capital necessary to operate at historical levels.
Duke LifePoint Healthcare
Transaction: Offer to purchase Haywood Regional Medical Care facilities is contingent upon WestCare, Inc.'s approval of an offer and the simultaneous closing of the two transactions.
Offer: Buyer would pay $26.5 million, plus or minus the amount by which the net working capital exceeds or is less than $1.5 million; a portion of the cash proceeds will be used by HRMC to satisfy any liens related to outstanding bonds or repay bowwowen money or capital lease obligations, and pay $1 million to WestCare, Inc. Buyer will be obligated to spend a minimum of $36 million to be funded over an eight-year period following closing.
Liabilities: Seller would remain responsible for all liabilities, indebtedness or obligations relating to operations prior to closing, including governmental or third-party payor claims, claims associated with violations of laws, employee benefit plan liabilities and medical malpractice or general liability claims.
HRMC staff: Employment will be offered to all active HRMC employees at comparable wages. All medical staff in good standing would retain privileges at the hospital.
Board of Trustees: Buyer would appoint and maintain an advisory board for the hospital consisting of physicians who are members of the medical staff, the hospital's cheif executive officer, an individual appointed by DQN and community representatives. The board would approve the selection of the CEO, adopt a vision, mission and values statement for the hospital, help develop/review strategic plans.
Indigent care: The buyer agrees to adopt the current indigent care policies, subject to ue diligence changes in law and the implications of healthcare reform legislation.
Continuation of services: Buyer agrees to provide core healthcare services and programs presently offered for a five-year period.