The letter is a binding agreement for the hospitals to make a final document to be approved by the boards of Sierra Kings district and Adventist Health, district voters and regulatory authorities. District voters will vote in a special election on June 7.
Under the agreement, Adventist Health would lease SKDH for 15 years at $800,000 a year; purchase rural health clinics for $4.6 million and equipment for $3.7 million; pay an amount equal to the adjusted working capital from the district’s balance sheet, currently $4.5 million; and offer employment to district employees. Some of the money would be used to retire the district’s revenue bonds, estimated at $7.5 million, while the remaining amount would satisfy claims in the district’s Chapter 9 Bankruptcy, for which the district filed protection in Oct. 2009.
The Central Valley Network is part of Roseville, Calif.-based Adventist Health. Sierra Kings Healthcare District includes a 49-bed hospital, a birthing center and rural health clinics in Reedley, Parlier, Dinuba and Orange Cove, Calif.
Read the Adventist Health Central Valley network release on Sierra Kings Healthcare District’s approval of its letter of intent.
Read more coverage on Adventist Health:
– California’s Adventist Health Names Wayne Ferch CEO of Central Valley Network
– Maryland’s Washington Adventist Hospital Names Joyce Portela President
– Adventist Health Won’t Appeal Voiding of Merger With Florida’s Bert Fish Medical Center
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