Tampa, Fla.-based Tampa General Hospital has entered a lease agreement to take over operations of DeSoto Memorial Hospital, a 49-bed facility in Arcadia, Fla., fox4now.com reported Nov. 12.
The agreement, which was approved by the DeSoto Memorial board on Nov. 10, includes a commitment by Tampa General to invest at least $45 million in the rural hospital, according to the report. The lease is set for 49 years at $10 per year and includes an option to buy.
The hospital, which lost $500,000 last year, is grappling with challenges common to rural facilities, including staffing shortages, aging infrastructure and dependency on government reimbursements. About 65% of the hospital’s revenue comes from Medicare and Medicaid, according to the report.
Tampa General plans to invest in the hospital’s infrastructure, expand service lines, grow the workforce and build a helicopter station to provide rapid access to advanced care at its main campus.
“With this agreement, Tampa General is making a long-term commitment to provide world-class care to rural communities in the Peace River Valley region,” John Couris, president and CEO of Tampa General, said in a statement provided to Becker’s. “We’re making a significant investment to strengthen the facilities, grow the team and expand the services to ensure that residents can access exceptional care close to home. Recognizing that DeSoto Memorial Hospital is a pillar in the region, we’ll work closely with community leaders to preserve the hometown traditions while elevating the patient experience.”
The agreement is pending final approval from the Florida Agency for Health Care Administration.
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