ProMedica hospital set to pay off bonds, clears way for sale

ProMedica Coldwater (Mich.) Hospital agreed to an early cancellation and pay off of its bonds with the county, a deal that could expedite its sale to Glendale, Calif.-based American Healthcare Systems, The Daily Reporter reported Oct. 13. 

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The health system is aiming to pay the remaining $3.59 million and interest it owes on bonds issued in 2012 by Oct. 31. As a nonprofit hospital, ProMedica assumed the debts when it purchased the county-owned hospital in 2012. 

In May, for-profit American Healthcare Systems announced that it intended to buy the Coldwater facility. However, its for-profit status meant it could not assume the debt held in government bonds. Hospital officials said that the Coldwater facility lost $12.6 million last year.

The Michigan attorney general will still have to review the transaction. Former hospital President Alan Sattler anticipated sale approval from the state in late October when the transaction was first announced. 

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