- Meeting Date:
- 03/25/2015
- Title:
- Hospital Lease
- Submitted By:
- Britt Hanson, County Attorney
- Department:
- County Attorney
of PRESENTER:
of PRESENTER:
of PRESENTER:
Information
Agenda Item Text:
Background:
The County leased the former County hospital outside Douglas to Southeast Arizona Medical Center for $1/year because it was struggling financially. In 2013/14, a for-profit company that specializes in financially distressed hospitals (Peoples’ Choice Hospital, or PCH) bought the hospital, renaming it Cochise Regional Hospital. Here is the link to its website. http://cochiseregionalhospital.org/
When PCH purchased the hospital, it asked the bankruptcy court to assume the $1/year lease. After County discussions with PCH, we agreed to allow them to assume the lease provided that it expired on July 1, 2014. Meanwhile, PCH would provide the County with financial information so that we could negotiate a fair lease. PCH never supplied the County with any financial information. Mr. Ortega and Mr. Hanson contacted PCH in July, 2014 asking for information. PCH did not respond. When contacted later in July, Mr. Alise of PCH said that they would provide that information ASAP. He did not follow up. Mr. Ortega emailed Mr. Alise again on March 3, 2015 and did not hear back. The email string is attached.
Accordingly, absent any information from PCH, the Board will need to set a lease rate on its own in order to avoid a gift clause issue. We will contact PCH and they can attend or not as they see fit.