Schedule extended to close Sparks Hospital deal
by May 15, 2009 2:14 pm 68 views
Sparks issued a statement Friday (May 15) afternoon saying the original May 15 target date for a definitive agreement “was aggressive” and would be extended.
The hospital did not release a new date.
The Sparks Health System Board of Directors announced March 30 that the hospital system would be sold to Alpharetta, Ga.-based Jackson Healthcare. Sparks employs about 2,300 and about 115 medical providers, including 98 physicians.
Terms of the deal were not disclosed. Both parties are aiming to close the deal no later than June 30, 2009.
The deal will require the $62 million in public bonds and associated bond servicing fees to be extinguished. The bonds were facilitated for a nonprofit organization through a public facilities board. Any acquisition of a nonprofit by a for-profit requires the public indebtedness to be cleared.
Everything but the Sparks philanthropic foundation is being sold to Jackson Healthcare. The foundation will likely have to make “amendments” to its bylaws, but would still be a “valuable” player in helping with regional health care needs.
Following is the full statement released Friday by Sparks.
At the May 15 meeting of the Sparks Health System Board of Trustees, the date for the definitive agreement targeted by the parties was extended to complete the due diligence process and develop a go-forward plan for the benefit of the hospital and the community.
On March 30, 2009, the Sparks Board of Trustees ratified a non-binding letter of intent
for the purchase of Sparks by Georgia-based Jackson Hospital Affiliates, a division of
Jackson Healthcare, LLC. Previously the date targeted for a definitive agreement was
May 15, 2009.
Both parties continue to focus on a final transaction. According to Judy Boreham, chair
of the Sparks Trustees, "We are committed to reaching an agreement that provides the
highest quality health care to the community, continuing employment for our loyal and
dedicated staff, and long-term financial viability to Sparks." She added that the timeline
originally forecast for the transaction was aggressive.
"Patient volumes have increased since the first of the year and nurse and physician
recruiting is going well. It’s clear that the community has been embracing Sparks as their provider of choice," said CEO of Sparks, Frederick Woodrell. "We remain excited about our discussions with Jackson and are continuing to work closely with them."