SONOMA COUNTY: Nonprofit Group Takes Over Healdsburg Hospital
Healdsburg General Hospital officially changes hands today, coming under the control of Nuestro Hospital Inc., a nonprofit group which embarked on "an intense bid to save the ailing" hospital eight months ago. The Santa Rosa Press Democrat reports that the transfer comes on the heels of Healdsburg City Council's decision to issue up to $7 million in bonds, "crucial to the purchase deal and essential to a smooth transition." Earlier this week, "three mutual fund companies made commitments to buy between $5 million and $7 million" of the bonds, according to Nuestro chair Daniel Rose. He explained that $3.7 million of the bonds will offset the purchase of the facility and the adjoining lot, while "[a]nother $200,000 will be used to buy the business itself, including about $2.5 million in accounts receivables," from the current owner, Columbia/HCA Healthcare Corp. Rose assured that although an additional $200,000 will be needed for upgrades to ensure the hospital's compliance with state earthquake codes, "Nuestro has plenty of money to begin operating the hospital Monday" (Lii, 11/12). Click here for recent CHL coverage of Nuestro's effort to purchase the hospital.This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.