60-bed Alabama hospital avoids closure

The only hospital in Cherokee County, Ala., will remain open due to a series of transactions that left the hospital with a new owner and operator, according to AL.com.

The Cherokee County Health Care Authority tried to buy the 60-bed hospital, now called Floyd Cherokee Medical Center, from Brentwood, Tenn.-based Quorum Health in early 2017. However, the parties were unable to reach an agreement, and Quorum subsequently sold the facility to NNZ Holdings in Sunrise, Fla.

In October, NNZ told the Cherokee County Health Care Authority the hospital was once again for sale. Although the healthcare authority understood the hospital would close if it did not sell, the healthcare authority knew if it bought the hospital it would need a third party to operate the facility.

The Cherokee County Health Care Authority solved this issue by acquiring the hospital from NNZ and then leasing it to Rome, Ga.-based Floyd Healthcare.

"It's been a long roller-coaster ride, but it's very satisfying to achieve this," Authority Chairman Eric Ellis told AL.com. "The hospital stays as an ongoing healthcare provider for the residents of our county."

More articles on healthcare finance:

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5 hospital bankruptcies so far in 2018

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