ARCADIA, Fla. — DeSoto County's only hospital took the next step towards a possible sale Thursday as the board of directors weighed offers from three different healthcare groups.
WATCH: DeSoto Memorial Hospital board discusses possible sale:
The process began in July when a Orlando-based AdventHealth approached DeSoto Memorial Hospital (DMH) about a deal, DMH spokesperson Sarah Hipp said. Under state law, board members said the hospital is required to solicit additional offers from other interested parties.
"Quite frankly we're blessed to have these opportunities," said DeSoto Memorial CEO Vince Sica.
The board voted to consider three proposals on Thursday.
- AdventHealth offered to buy DeSoto Memorial for around $52 million.
- Tampa General Hospital (TGH) proposed investing $45 million to lease the facility for 49 years. TGH also offered to station a helicopter at DeSoto.
- Management company NorthStar Hospitals said it would manage and possibly purchase the hospital for an undisclosed amount.
Board Chair Kenneth Hancock asked about the difference between a sale and lease. DMH general counsel Dave Davidson said the exact details would be worked out in a deal. But under a sale, the board would have less power.
“Because you’ll have a new entity that owns all the hospital’s stuff, basically,” Davidson said. “And it’s up to them to run the hospital.”
With a lease, the board would still exist as a landlord, Davidson said. If a lease is under fair market value, the board needs to justify why it’s in the best interest of the community, Davidson said.
Tampa General would assume control of the hospital’s operations under the lease, Davidson said. Operationally, there isn’t much difference between a lease or sale, Davidson said.
After a $45 million investment, TGH offered to lease the hospital for $10 a year. TGH general counsel James Kennedy said the offer is modeled off the arrangement Tampa General has with the Hillsborough County Hospital Authority.
Kennedy said TGH would also be open to a sale.
The board would retain most control under the agreement with NorthStar, Davidson said. DMH would still employ the clinical staff. Under the other agreements, hospital staff would become employees of Advent or TGH.
The decision comes as the hospital faces financial challenges. An independent audit found DeSoto Memorial lost more than $500,000 dollars last year.
"We just can't let this become an abandoned building," said Board Member Robert Heine, Jr. Heine also serves on the Arcadia City Council.
Board members emphasized their priority is keeping the hospital in Arcadia and holding on to staff.
"I know that's important for me because we have good people who provide good care to our residents here," said Hancock.
All three organizations committed to maintaining the hospital's presence in DeSoto County and keeping existing staff.
“Both [TGH and Advent] have made commitment to provide the specialists that we don’t have, currently have now,” Sica said. “That would allow us to keep more of the patients so that we would be transferring less.”
During the meeting, Tampa General Hospital's CEO John Couris said his organization wants to hire more physicians at the hospital.
"Our intention is to invest in that community, recruit physicians to that community and build a healthcare network that appropriately represents what the community needs and wants," Couris said.
Doctor Abha Agrawal of NorthStar Hospitals echoed similar commitments.
"As we mentioned in our letter of intent, we are absolutely committed to retaining employees," said Agrawal. She said NorthStar would likely need to hire additional staff.
Agrawal previously led hospitals in Massachusetts and Illinois, according to NorthStar’s bid.
AdventHealth did not speak during the meeting but said in its offer that it "Intends to keep the existing workforce intact by retaining all employees in good standing and eligible for rehire by an AdventHealth institution."
AdventHealth spokesperson Lauren Rozyla-Wong told FOX 4 in an email that, "AdventHealth is excited to have the chance to offer our unique brand of whole person care to the DeSoto County community."
The board did not make a final decision and will meet individually with each of the three organizations before moving forward.
"Very important that we have quality healthcare in DeSoto County and Arcadia," Sica said.
Hospital volunteer Jane Powers, who works in the gift shop at least once a week, said she'll be following the discussions closely.
"The hospital is important to DeSoto, so it's important to me," Powers said.
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