ERWIN — Some work has already been done and more is planned before Mountain States Health Alliance’s acquisition of Unicoi County Memorial Hospital becomes official.
In late November, the UCMH Board of Control opted to move forward with MSHA’s acquisition proposal over one submitted by Wellmont Health System. Commitments MSHA included in its proposal were to provide voluntary contributions of $750,000 each to Unicoi County and the town of Erwin, a $1 million contribution to a foundation to enhance health care services within the county, a $2 million line of credit to sustain UCMH’s operations through the transaction’s closing and assumption of all UCMH’s debt and financial obligations.
MSHA also committed to the construction of a new acute care facility within Erwin.
MSHA has already taken some action to complete items outlined in its acquisition proposal.
“We have signed the letter of intent and the interim management agreement with Unicoi County Memorial Hospital’s Board of Control, as well as the agreement for the $2 million line of credit, which the hospital can now begin drawing from as needed to support daily operations,” said Tim Belisle, MSHA vice president of corporate compliance and general legal counsel.
The interim management agreement has left UCMH Interim Consultant CEO Jete Edmisson with Spectrum Health Partners still onboard at the hospital. Spectrum Health Partners was previously hired by the board to conduct an operational overview at UCMH, is still onboard.
The transaction’s definitive agreement is set to be completed in February, after which the transaction will be reviewed by the state attorney general’s office upon notification by the Board of Control.
“We are currently working with legal counsel for the UCMH Board of Control to prepare a final definitive agreement, which is expected to be completed by mid-February,” Belisle said. “After that agreement has been signed by both parties, the UCMH Board of Control will officially notify the Tennessee attorney general’s office of the transaction.”
According to state law, the sale of a public hospital must be reviewed by the state attorney general. Within 45 days of receiving written notice of the sale, the attorney general will notify the hospital of a decision to either object to the transaction or take no action.
rrman56 writes:
December 23, 2012
7:56 PM
whatever
concerncitizen76 writes:
December 23, 2012
8:39 PM
I don't understand how the Hospital Board would not choose Wellmont, it is common knowledge that at lease 75 % of the Erwin Resident wanted Wellmont . the Hospital was going under ( bankruptcy ) so I guess maybe the decision the UCMH Broad had made in the past was not very good either
Tiredoftaxandspend writes:
December 24, 2012
6:26 AM
75% of those who showed up at the board meetings may have been Wellmont supporters. If you put it to a real vote, 75% of the county probably didn't care at all.
masonjar writes:
December 24, 2012
9:45 AM
Last I heard, there was a petition being passed around in support of Wellmont and it had only 800 signatures, which is about 20% of the voting population. You all need to go back to school and take some math classes. MSHA was clearly the best choice and the board voted for them. Get over yourselves already. You keep hollering you all are the majority and throwing out these 75% numbers when in reality it is 20%. Its over and done with just like the presidential election...not everyone gets their way. Lets move on please.
knifehandle67 writes:
December 24, 2012
5:18 PM
masonjar, Maybe you don't understand how MSHA treats people, many fear their name being out there on something that MSHA can view. One last question, why did the WJHL and Johnson City Press show that around 70% wanted Wellmont, those polls were taken in a manner that did not allow MSHA to know the names of those against them. The Hospital board is made up of non healthcare educated people and the only one with an MD was voting for a job with MSHA. Wellmont cares for people, MSHA only cares about building an empire to 100% control healthcare in this area.
masonjar writes:
December 25, 2012
10:16 AM
If Wellmont cared about Unicoi County, they would have pledged to build in the center of the county, not on the north end. They clearly only wanted in to compete with MSHA in Johnson City. Your 70% figures are bogus. Your 800 signatures is a small minority. Without an all-out vote, nobody will ever know the real and actual percentage of who wanted either of these. But it doesn't matter now. The board voted and it is over and done with.
provided.