KU Health and Ardent’s joint venture closed its acquisition of 378-bed St. Francis Nov. 1. St. Francis was a nonprofit hospital for 109 years and boasted tax-exempt status. However, the $1 sale means Kansas will receive little compensation for the deal.
“The sale of (St. Francis Hospital) is unlikely to produce significant net proceeds since the purchase price is $1 plus net working capital,” Kansas Attorney General Derek Schmidt said in a letter obtained by Lawrence Journal-World. “Out of those proceeds any remaining liabilities would need to be paid post-closing. Since SFH is a part of (Sisters of Charity Leavenworth), a not for profit health system, any remaining net proceeds would accrue to SCL to promote its charitable mission.”
The deal does not mandate KU Health or Ardent establish a charitable foundation with the purchase. This requirement was proposed when other nonprofit hospitals transferred to for-profit status in Kansas, the report states.
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