Quorum would charge $480K to help Alaska hospital transition to new owners

Brentwood, Tenn.-based Quorum Health Resources and Juneau-based Southeast Alaska Regional Health Consortium have submitted competing proposals to manage Sitka (Alaska) Community Hospital, according to KCAW.

Quorum said it would take on management of Sitka Community Hospital for a fee of $454,000 a year for five years. That amount does not include the salaries of the hospital's two top executives or travel expenses, according to the report.

Under SEARHC's proposal, the consortium would pay between $8 million and $9 million to take over Sitka Community Hospital, buy out the city's pension obligation to hospital employees for about $700,000 and make annual lease payments of $140,000 to Sitka to use the hospital property for five years, until a new hospital is constructed, according to the report.

Although Quorum and SEARHC are competing to take over Sitka Community Hospital, Quorum offered to help ensure the hospital smoothly transitions to new ownership if its proposal is not accepted.

"The second proposal we're proposing is a short-term agreement to help you facilitate a smooth transition if you accept the SEARHC proposal," Bill Donatelli, a senior vice president for Quorum, told the Sitka Assembly Aug. 13.

Mr. Donatelli said Quorum would charge a one-year fee of $480,000 to help Sitka Community Hospital transition to new ownership, according to the report.

The Sitka Assembly will deliberate the future of the hospital at a meeting Aug. 28.

More articles on healthcare finance:

Proposed payment changes likely to ding hospital margins
Massive billing scheme spread to 10-hospital group, lawsuit alleges
These 11 hospitals closed in 2018: Here's why

 

© Copyright ASC COMMUNICATIONS 2021. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.