Community News 8/29/08
Empire Health sale approval means hospital gets new owners
By Mike Huffman
Spokas Editor

It looks like the last of the obstacles stopping a for-profit Tennessee-based company from purchasing Empire Health Services – which owns Spokane Valley Hospital and Medical Center – has been removed.

After receiving the green light from both the Washington attorney general’s office and the state Department of Health in recent weeks, there is little to stop the deal from taking place.

“I’m pleased that this proposal has been approved, and the Department of Health has beaten its timeline to make this important decision,” Gov. Christine Gregoire said in a prepared statement last week. “I know it was a difficult choice for the local hospital board to sell the facilities.”

Deaconess Medical Center, located in downtown Spokane, is also owned by Empire Health, a nonprofit agency, and affected by the agreement.

The proposed sale to Community Health Systems of Tennessee has been a months-long saga, but the state approval means the $144 million sale should be the last hitch, according to DOH officials. Public hearings generated mostly positive comments, with many hoping the deal would be finalized soon.

The approval, however, comes with some conditions. Community Health must set aside $80 million in proceeds from the sale for an independent nonprofit foundation for charitable purposes. And it also requires the buyer to make at least $100 million in capital investments to the hospitals over the next five years.
Finally, Community Health must also expand the level of charity care provided by the two facilities and continue to provide essential services for at least a decade.

“We know how important these hospitals are to the people of the Spokane area,” Mary Selecky, secretary of health, said. “We heard from hundreds of people and considered their input. It’s obvious they care deeply about the issue.”

The decision was based in part on a legal opinion from the state attorney general’s office. The conditions set forth in the deal make sure Empire’s charitable assts remain intact and that proceeds will continue to be used for charitable purposes.

Last November, Community Health Systems filed its letter of intent to buy the hospitals. Valley Hospital and Deaconess have 511 acute-care beds and treat more than 225,000 patients each year.