ProMedica Coldwater still on the market after paying off county bonds
TOLEDO, OHIO — The sale of ProMedica Coldwater Regional Hospital still may go forward, according to Tausha Moore, associate vice president of communications for the Toledo-based hospital system.
The hospital system notified Michigan's attorney general on Nov. 3 that ProMedica exercised the option to terminate the April $8.5 million sale agreement to for-profit American Health Systems.
Moore said in a written statement, "Because doing so affords us more flexibility in the sale process."
In a seemingly contradictory statement, ProMedica said the Coldwater facility remains on the market. "We are open to conversations with other prospective partners, which we can entertain now that we are not formally bound by an asset purchase agreement," Moore said.
Moore explained, "Despite the appearance of formally terminating that agreement, we want to offer reassurance that we remain in communication with American Health Systems and are hopeful to complete the transaction with them."
Just days before canceling the sale, ProMedica paid Branch County $3.6 million, an early payoff and cancellation of the $7.445 million March 2012 bonds issued for hospital renovations. The bond payoff was necessary for the sale to AHS.
Prior story ProMedica to pay off county hospital bonds
ProMedica assumed the bond debt as a nonprofit hospital when it purchased Community Health Center of Branch County on January 1, 2018.
ProMedica's bond counsel requested several wording changes in the resolution authorizing the transaction, county administrator Bud Norman then completed the payoff.
The bonds were the final tie between Branch County and ProMedica, which purchased the county-owned Community Health Center of Branch County for $17 million.
ProMedica had Coldwater on the market in 2020 until the COVID-19 pandemic, then did not actively seek buyers this year.
ProMedica was waiting for the attorney general to approve the transfer to AHS, which was expected this month.
State law gives Michigan's attorney general the right and authority to review the sale of all charitable nonprofit corporations.
The AG's office said the review is necessary "to protect the charitable assets and to ensure that they are not diverted for private benefit."
The attorney general planned for local hearings in Coldwater in November on the sale until the termination notice was issued.
Related story: What we know about the hospital chain looking to purchase ProMedica Coldwater
Moore said, "ProMedica remains committed to navigating the complex hospital sale process, which may take several more months to complete."
The hospital reduced services following ProMedica Coldwater's loss of $12.6 million in 2022.
The 75-bed hospital eliminated its in-patient surgical floor service and closed beds on its second floor.
Tuesday, ProMedica said, "To help ensure the long-term viability of the hospital," it would close the labor, delivery, recovery, and postpartum department by the end of the year.
ProMedica site administrator Dan Schwanke said, "We realize the impact and disruption this will cause; know that we are committed to working with each patient to make the transition as smooth as possible. We will also work with our employees affected by this decision."
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The closing of maternity services is a nationwide trend due to the difficulty of adequately staffing the service.
Becker's Hospital Review reports that 70 hospital maternity units in the U.S. have already closed in 2023.
— Contact Don Reid: dReid@Gannett.com.
This article originally appeared on Coldwater Daily Reporter: ProMedica stills hopes for Coldwater hospital sale
