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