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T’ville hospital selling for $2.2 million Facility being purchased by Resurgence Health Group At a special called meeting held Tuesday morning, Thomasville’s City Council agreed to enter into sales contracts with Mobile Infirmary and Resurgence Health Group to sell Thomasville Infirmary. Mayor Sheldon Day said the transaction to change ownership of the hospital from Gulf Health Systems, a subsidiary of Mobile Infirmary, to Clarke County Health, a subsidiary of Resurgence Health Group, will occur on Nov. 1. The way the transaction is set up, Mobile Infirmary will sell the hospital to the city, which will turn right around and sell the facility to Resurgence, a move that will happen all on the same day. Day said the sale price of the hospital is $2.2 million plus working capital. "Working capital includes supplies, drugs in the pharmacy, the accounts receivable - those sorts of things," he said. "We don’t know what the exact figure will be on working capital since it’ll change daily between now and when the sale takes place but it’s estimated to be around $250,000." The mayor said the $2.2 million selling price reflects a credit of $1.3 million the city received from Mobile Infirmary for payments the city made to Thomasville Infirmary as part of the incentive package to get Mobile Infirmary to purchase the hospital several years ago. "They had originally asked $3.5 million for the hospital," Mayor Day said. "They did agree to give us consideration for the $1.3 million we put into the facility over the last few years." The mayor said the 40-page document the council okayed Tuesday contains other provisions as well. "It includes a clause that says Resurgence will, within 24 months of the close of the sale, file a certificate of need with the state for a replacement facility," Day said. The contract states the replacement facility shall be located no more than five miles from the present hospital location. "If they do build a new hospital, we agreed to buy the current building from them for $1 million," Day said. "However, we will not buy the building until they move into a new facility." The mayor said the Nursing Home Board has indicated an interest in taking over the building should that sale come about. "The contract also includes a non-compete clause," Day said. "That basically precludes Mobile Infirmary or any of its entities from competing against Resurgence by building a regional facility within a 50-mile radius of Thomasville for the next five years." The mayor said the contract also indemnifies the city against any potential liability for the few moments that it owns the hospital. "The contract recognizes us as a pass-through agent," Day said. "It removes any possible liability from us during that brief period." Councilwoman Alberta Dixon asked Day what would happen to the city’s Healthcare Authority once Resurgence takes over. The mayor said the authority would continue to function but added Resurgence would be putting together a local board to help with the operation of the facility. The mayor was also asked about employee benefits under the contract. "The employees will be able to keep their earned-time-off under this contract and they’ve worked out a deal where they’ll be able to swap over their insurance and other benefits seemlessly," Day said. City seeking another downtown grant The council also applied for a $1.1 million ISTEA grant from the Alabama Department of Transportation to complete Phase III of the downtown project. Phase III includes reworking some areas west of West Front Street up to Highway 43. "I don’t think we’ll get the entire $1.1 million," Day said. "However, I don’t think it’ll hurt us to ask for it. We may only get about $500,000 but it’ll all go towards helping with the project." The mayor said the city will use the money to do as much work as possible. "We’re treating it like we are other projects," he said. "We’ll work till the money runs out then try to find some more." The grant will be awarded in June or July of 2004. Day said the city will have two years to complete the project once the money is awarded. Phase II of the project includes extending the work from Alabama Avenue up West Front Street to Adams Avenue. At an estimated cost of $350,000, the city received a grant of $237,000 to help with that leg of the project. The remainder will be made up of matching funds. Day said that project will likely start in spring of 2004.
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