Under the agreement, which was effective July 7, Navicent will act as an independent contractor for ORMC and will be responsible for all financial responsibilities previously maintained by the medical center.
ORMC will continue to control its assets and operations for the duration of the temporary agreement, and will “oversee the provision of the services for the hospital and … conduct, supervise and direct [daily] operations [at] the hospital,” the agreement states.
The official change in ownership will reportedly occur Oct. 1. Once finalized, Navicent Health will appoint a new CEO to lead the hospital, according to the temporary agreement, which the Union-Recorder obtained.
The transaction is subject to regulatory approval.
ORMC commenced Chapter 11 bankruptcy proceedings in May. The medical center had previously negotiated to sell its assets to Prime Healthcare Foundation, the Ontario, Calif.-based nonprofit arm of Prime Healthcare Services. Navicent outbid Prime Healthcare for the management contract June 29.
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