Tuesday, November 6, 2012

Survival of Bridgeport Hospital?

It looks as if my previous post asking if Bridgeport Hospital will close, may have been answered, in part, by the news in today’s Wise County Messenger's Update. From what I read, it looks like the deal is structured more like a bailout than a takeover.
I find myself struggling with the fact that WRHS can come up with $20 million to purchase an operation that loses money but am thankful that the Bridgeport hospital will more than likely continue operations.
Although probably a moot point, if a bidding war arises, and a profit from the sale is made, who will claim the profit (amount exceeding debt) that this non-profit organization might produce? Current management, stockholders, ect?…


Anonymous said...

Guess I'm out of the loop.
How is it a non-profit?

Anonymous said...

Any $ from the sale of the hospital will go towards paying off the bond holders. The hospital issued (sold) $59M in bonds. So they get paid off first. If there is any excess then the Bridgeport non-profit hospital board of directors will have to set up some sort of trust. However there is NO WAY anybody will pay $59M for that hospital. If Wise can get it for $20M then they will probably be able to operate it at a small profit. Or they may just shut it down and make everybody drive to Decatur. Then again a hosptial out of the metroplex may buy it so they can start to expand out to the west.