Under the agreement, Health Management will pay $200 million for the rights to operate Munroe Regional for 40 years and commit $150 million to expanding and improving the facility, according to a news release. Health Management initially signed a letter of intent to lease the hospital in June.
Health Management would also invest $75 million in the hospital’s maintenance and maintain the hospital’s existing charity care policy. Munroe Regional will operate under a local board of trustees composed of community leaders, and the hospital will begin paying annual property taxes, according to the release.
The definitive agreement will now be sent to Health Management’s board, which will consider it for approval tomorrow, according to the release. The Health Management audit committee has already approved the transaction.
More Articles on Hospital Transactions:
HMA Chosen as Munroe Regional Medical Center’s Suitor
HMA Signs Letter of Intent to Lease Munroe Regional Medical Center
Munroe Regional in Florida Weighs Lease Options With HMA, LifePoint
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