COLDWATER, MI (WTVB) – After first going on the market in early 2020 right before the COVID-19 pandemic, ProMedica Coldwater Regional Hospital announced on Wednesday it has entered into an asset purchase agreement with American Healthcare Systems, which intends to acquire the hospital.
According to a news release issued by ProMedica, American Healthcare Systems is a for-profit organization with health care management expertise.
Officials at ProMedica say financial challenges that have worsened since the start of the COVID-19 pandemic are at the root of their decision to sell the hospital.
ProMedica President Alan Sattler says, “The pandemic and its fallout, including staffing shortages and rapidly rising expenses, have further strained finances at hospitals across the country — and Coldwater Regional Hospital has been no exception. With the financial strain ProMedica has been experiencing, especially since the pandemic, it has become necessary for us to revisit our options for Coldwater Regional Hospital.”
The news release went on to say American Healthcare Systems has a plan to help ensure the sustainability of the hospital and it is expected to focus on maintaining or expanding hospital services. Details about the organization’s plan will be forthcoming pending the sales transaction approval and completion.
Sattler adds, “Considering the current health care landscape where 30 percent of rural hospitals are at risk of closing in the near future, this sales transaction is good news for Coldwater. We believe that transitioning the hospital to American Healthcare Systems is the best option to help ensure that the Coldwater community continues to have acute care close to home.”
The transaction is subject to regulatory approvals and expected to be completed in four to six months.
During the transaction phase, ProMedica says they will continue to fully support the hospital.
Just over two years after officially acquiring the former Community Health Center of Branch County, ProMedica Health System said in January of 2020 it was looking at offers to sell the Coldwater Hospital. They temporarily took the hospital off the market four months later due to the COVID-19 pandemic.
While ProMedica officially purchased the hospital as of January 1, 2018, it had operated the facility under a management agreement for the two previous years.
Branch County sold the Community Health Center to ProMedica for $17 million, with the money used to pay into the retirement system to cover pension liability. ProMedica also assumed responsibility of a $9.2 million bond issue for capital improvements.
The real reason is they suck. Twice in the last 5 months they let someone go from ER without treating them that were in need of serious treatment. I personally drove her to another er and the first time Ann Arbor kept her for a week and the second time Marshall kept her 3 days did surgery on her. This place couldn’t even do an altar sound on Sunday through the e.r!