The sale of county-owned Clearwater Health Service in Bagley, Minn., to a medical management company for $2.2 million is set to close by the end of this week, according to a Grand Forks Herald report.
Cocoon Holdings and Monarch Management in Grand Forks, N.D., is expected to make a balloon payment of $2.2 million along with paying off remaining debt that could range from $1.1 million to $1.5 million. Some employees and former administrators are worried Cocoon does not have the financial resources to operate CHS. A county official said it is “premature” to react before the sale even though there are questions about whether Cocoon will come through on Friday, according to the report.
Under the new owner, every employee of CHS will be terminated and must reapply for their jobs, according to the report. Employees are concerned about their terms of employment under Cocoon, including whether or not they will have health insurance benefits.
The Clearwater County board of commissioners is meeting Tuesday to discuss the sale.
Read the Grand Forks Herald report on the sale of Clearwater Health Service to Cocoon Holdings and Monarch Management.
Read about other hospital transactions and management deals.
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