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Nicklaus Children's to sell Miami Medical Center

Miami-based Nicklaus Children's Hospital plans to divest Miami Medical Center two years after purchasing it for $88 million, according to The Miami Herald.

Nicklaus Children's said it wants to sell the specialty hospital because it wants to focus on outpatient clinics and expanding its campus in Coral Terrace, Fla.

The decision comes after a year of layoffs, administrative changes and financial turmoil for Nicklaus Children's, according to the report. 

Nicklaus Children's bought the campus of Miami Medical Center in December 2017 after the 67-bed specialty hospital suspended patient services in October 2017 and before the hospital filed for bankruptcy in March of 2018. The bankruptcy was finalized in January of 2019.

Nicklaus Children's CEO Matthew Love said that the hospital has hired an outside consulting firm to help sell the building, and the sale already has been approved by the board. He said that he will sell the building for the best price possible.

"When you talk about expansion and growth, it doesn't always have to be brick and mortar," Mr. Love told The Herald. "[Miami Medical Center] was right down the street. What I’m not really interested in is replicating high-end services — those are expensive."

Sal Barbera, a former healthcare executive who now teaches healthcare administration at Florida Atlantic University, told the publication he thinks it has more to do with the hospital's financial woes.

"They need to unload that asset; they need the cash," Mr. Barbera said. "They didn’t buy it that long ago."
In March of 2019, Nicklaus Children's said it would lay off workers, eliminate pay raises for all employees, limit new hires and reduce pension contributions to help lower operating expenses.

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