Hospital Agreements Still In Force Despite Sale To Triad
July 28, 2016 at 4:25 p.m.
When Kosciusko Community Hospital was sold to Quorum Health Group Inc. in 1999, the agreement provided for the possibility that if the KCH board determined Quorum wasn't living up to the terms of the sale, the board could buy back the hospital from Quorum.
The provision could be enforced only by the KCH board and Quorum could not force a buy-back through the agreement. The provision is for the first 10 years only.
Despite Triad Hospitals Inc. acquiring Quorum, that provision and others are still binding, according to Willis Alt, director of Kosciusko 21st Century Foundation.
"The contract is not negated, it continues on as it was," Alt said. He said with the Triad and Quorum merger, Triad is still held to the same terms as when Quorum bought KCH. And to make sure those terms are met, Alt said, the board of directors meets quarterly and monitors the business and quality of care provided by the hospital.
So far, Alt said, Quorum has abided by all the agreements that "we asked of them, even more so." For example, he said, Quorum committed to $8 million in capital expenditures to the hospital when they bought it, but spent $23 million.
The only development KCH is awaiting, Alt said, is the oncology center, and groundbreaking for it will be in the fall, he said. The women's health center and SurgiCenter have already begun construction.
The net proceeds of the sale of KCH totaled approximately $65 million. Those funds were placed in the control of the K21 Foundation. The foundation was formed "to promote, improve and enhance the quality of life of the residents of Kosciusko County," according to a statement released in 1999.
Funds generated through the investment of the sale proceeds are used to support new and existing community programs that address quality-of-life issues.
The annual report of the K21 Foundation, Alt said, will be available to the public in about two weeks.
However, Alt said, last year's total net assets were $67.8 million. In 1999, they were $66 million. He said the Foundation's net assets "held pretty steady even in a downward market." Half of the money is held in Treasury bills and local CDs with the other half in securities.
In 2000, more than $1.1 million was awarded in grants. In 1999, $100,000 was given to the Good Samaritan Fund. So far, in 2001, approximately $108,000 has been awarded in grants.
Triad Hospitals Inc. and Quorum Health Group Inc. announced in October they signed an agreement for Triad to acquire Quorum for approximately $2.4 billion in cash, stock and assumption of debt. The transaction created the third-largest investor-owned hospital company in the United States.
Quorum was based in Brentwood, Tenn., and employed approximately 5,000 people through the Lutheran Health Network at its area hospitals.
Triad Hospitals is based in Dallas, Texas.
For more information on the K21 Foundation, visit their online site at K21Foundation.org or at guidestar.org [[In-content Ad]]
When Kosciusko Community Hospital was sold to Quorum Health Group Inc. in 1999, the agreement provided for the possibility that if the KCH board determined Quorum wasn't living up to the terms of the sale, the board could buy back the hospital from Quorum.
The provision could be enforced only by the KCH board and Quorum could not force a buy-back through the agreement. The provision is for the first 10 years only.
Despite Triad Hospitals Inc. acquiring Quorum, that provision and others are still binding, according to Willis Alt, director of Kosciusko 21st Century Foundation.
"The contract is not negated, it continues on as it was," Alt said. He said with the Triad and Quorum merger, Triad is still held to the same terms as when Quorum bought KCH. And to make sure those terms are met, Alt said, the board of directors meets quarterly and monitors the business and quality of care provided by the hospital.
So far, Alt said, Quorum has abided by all the agreements that "we asked of them, even more so." For example, he said, Quorum committed to $8 million in capital expenditures to the hospital when they bought it, but spent $23 million.
The only development KCH is awaiting, Alt said, is the oncology center, and groundbreaking for it will be in the fall, he said. The women's health center and SurgiCenter have already begun construction.
The net proceeds of the sale of KCH totaled approximately $65 million. Those funds were placed in the control of the K21 Foundation. The foundation was formed "to promote, improve and enhance the quality of life of the residents of Kosciusko County," according to a statement released in 1999.
Funds generated through the investment of the sale proceeds are used to support new and existing community programs that address quality-of-life issues.
The annual report of the K21 Foundation, Alt said, will be available to the public in about two weeks.
However, Alt said, last year's total net assets were $67.8 million. In 1999, they were $66 million. He said the Foundation's net assets "held pretty steady even in a downward market." Half of the money is held in Treasury bills and local CDs with the other half in securities.
In 2000, more than $1.1 million was awarded in grants. In 1999, $100,000 was given to the Good Samaritan Fund. So far, in 2001, approximately $108,000 has been awarded in grants.
Triad Hospitals Inc. and Quorum Health Group Inc. announced in October they signed an agreement for Triad to acquire Quorum for approximately $2.4 billion in cash, stock and assumption of debt. The transaction created the third-largest investor-owned hospital company in the United States.
Quorum was based in Brentwood, Tenn., and employed approximately 5,000 people through the Lutheran Health Network at its area hospitals.
Triad Hospitals is based in Dallas, Texas.
For more information on the K21 Foundation, visit their online site at K21Foundation.org or at guidestar.org [[In-content Ad]]