A merger between Orlando, Fla.-based Health Central and Orlando Health has run into a problem, as system executives discovered an outright purchase by Orlando Health might not be possible, according to an Orlando Sentinel report.
Richard Irwin, CEO of Health Central, said the system is now examining other avenues to complete the transaction. Both sides are still committed to moving forward with a deal.
Tax law in the district governing Health Central doesn’t apply capital improvements over time toward the purchase of property in the same way it applies upfront capital, according to the news report. In February, Orlando Health pledged to invest $120 million in capital improvements to Health Central over the next five years.
“The parties are now looking very diligently for another way we can achieve our objective,” Mr. Irwin said in the report. “The idea of a sale is still on the table, but there seems to be some real advantages of leasing.” He hopes to present a revised plan at an upcoming public meeting Aug. 30, according to the report.
Read the Orlando Sentinel report on Health Central and Orlando Health.
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