Mr. DeGroot told members of the Branch County Commission work session Thursday local lawmakers introduced special legislation June 7 to convert the Coldwater, Mich.-based public hospital into a nonprofit. He said the status change is necessary to facilitate the transaction, according to the report.
“If we don’t [become a nonprofit] when we close the transaction with ProMedica, CHC would become a new entity … [and] would need to do a number of things to continue operating as a hospital, [including] … file a new certificate of need with the state; apply for a new federal tax ID number and IRS tax exempt status; enroll with Medicare and Medicaid and other insurance companies as a new provider; and obtain new licenses, certifications and accreditations to provide care,” Mr. DeGroot told The Daily Reporter.
The status change would also allow ProMedica to assume all of CHCBC’s liabilities. ProMedica would also pay $17 million toward unfunded employee pension obligations, along with the remaining $9 million in hospital renovation bonds.
The transition to a nonprofit entity would also help CHCBC avoid three months of cash flow issues it would have experienced while waiting for regulatory approval, according to the report.
Mr. DeGroot told The Daily Reporter state officials would not act on the issue until September.
CHCBC began its search for a partner in 2015. ProMedica has managed the hospital since January 2016.
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