The San Andreas, Calif.-based Mark Twain Health Care District reportedly held a special closed-door meeting Friday to continue negotiating a potential lease agreement renewal with Mark Twain Medical Center’s current operator, according to the Calaveras Enterprise.
Randy Smart, MD, executive director of the Mark Twain Health Care District, said the discussions are contingent upon the completion of a fair market valuation of Mark Twain Medical Center, which has yet to be completed.
Dr. Smart told the Calaveras Enterprise earlier last week the majority of the valuation should be completed by the district's meeting with representatives from San Francisco-based Dignity Health, the hospital's current operator, Friday.
The current lease between the two institutions expires Dec. 31, 2019, and the hospital is unable to renew the lease under state law. Documents made public by the Mark Twain Health Care District indicate the new lease would restructure the hospital's relationship with Dignity.
The new 10-year lease would be subject to an additional four automatic five-year renewals, for a total of 30 years. Under the new lease agreement, the hospital would pay the district roughly $102,000 per month in rent. The bylaws of the agreement would also establish a seven-member community board, which would be responsible for credentialing medical staff, maintaining quality oversight and providing the board of directors with strategic guidance, the report states.