Iron Stone Real Estate Partners in Philadelphia purchased Girard Medical Center and Goldman Clinic, also in Philadelphia, for $8.5 million during a bankruptcy auction in August. Under the sale agreement, NHS Human Services was contracted to operate the facilities and provide drug treatment and behavioral health services at the facilities.
“We have had a change in strategy as of the last few days, when we realized that NHS wasn’t going to be able to give us a date at which point they could begin operations at the site,” Eva Gladstein, deputy managing director for health and human services for Philadelphia, told The Inquirer Thursday.
Since negotiations with NHS fell through, the city will reportedly begin discussions with North Philadelphia regarding a sublease agreement to operate the facility for the short-term, the report states. However, the change in ownership would need to be approved by the U.S. bankruptcy court.
Ms. Gladstein said the city will still sign a one-year lease with Iron Stone for Girard Medical Center. The deal is expected to close Nov. 30, nearly one month after it was previously scheduled to close.
More articles on transactions and valuations:
State OKs Hartford HealthCare deal to affiliate with Connecticut hospital
Houston Healthcare, Navicent explore potential partnership
UPMC children’s hospital, West Virginia facility partner on newborn care
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.
