Ron Osladil, the hospital board’s chairman, said Essentia renewed its interest in a buyout clause, which he called a “threat,” and left officials concerned following the meeting.
Essentia has operated Essentia Health-Sandstone since 1997. According to the report, local board members had complained that in recent years the health system had not invested adequately in the hospital. Last fall, the board gave Essentia notice that they were canceling the health system’s lease, which expires in August.
Controversy arose over Essentia’s intention to exercise a buyout clause in their lease agreement. According to the report, tension dissipated when administrators had two “listening and discussion” meetings that went well.
According to the report, the transition committee believes negotiations have stalled while a spokeswoman from Essentia Health reported that Essentia administrators did not receive that impression from the recent discussions. The North Pine Area Hospital District is scheduled to vote soon on Essentia Health’s proposal for purchasing the Sandstone hospital, according to the report.
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