Top bid for Kentucky hospital falls through

Ayla Ellison (Twitter) - Print  | 

Pineville (Ky.) Community Healthcare received a $7 million takeover bid, but the hospital ended up selling for less than half that amount, according to the Lexington Herald-Leader.

The hospital entered bankruptcy in late 2018, and the court arranged for it to be sold through a sealed-bid auction. Cura Healthcare placed the winning bid of $7 million. After adding in a 5 percent buyer's premium, the sale price totaled $7.35 million, according to the Middlesboro Daily News.

Cura lost the deal after failing to make required initial deposits, including a 20 percent cash deposit of $1.4 million, according to the Lexington Herald-Leader.

First State Bank of the Southeast was the second-highest bidder. The bank closed a $2.8 million deal to acquire the hospital on Sept. 5.

The bank plans to lease the building to a nonprofit group who took over the hospital when the bankruptcy proceedings began, according to the report.

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