WMBB News 13 - The Panhandle's News LeaderBay Medical Trustees Approve Hospital Lease

The Bay Medical Center Board of Trustees has passed a resolution to lease the hospital and sell its assets to a joint venture partnership.  It's now up to county commissioners to decide whether the forty year, $154 million deal goes to closing.

Hospital trustees unanimously approved the transaction Friday and, if everything falls into place in the coming weeks, Bay Medical will become a private for-profit hospital.

"We'll be working very diligently with county staff and with the county commissioners to alleviate any lingering concerns that they may have," said Jim Shannon of LHP Hospital Group, the company with an 80% stake in the deal.  "But I don't want to minimize today… today was a good day."

Trustees are hoping it's the day Bay Medical's financial fortunes began to turn around.  "We're going to have the financial backing and we're going to have the clinical integration," said Don Connor, chairman of the Board of Trustees.  "We're going to move to a new level."

Sacred Heart Health System, which operates several hospitals in Northwest Florida, is the other partner in the joint venture and has the remaining 20% interest.

Connor sees many advantages in affiliation, including paying off Bay Medical's debt and economies of scale.  "We're going to have the benefit of lower priced equipment, drugs, whatever hospitals require," said Connor.  "That's going to be very helpful... it's going to go to the bottom line."

Throughout negotiations, trustees have insisted that charity care be continued by the joint venture.  Henry Stovall of Sacred Heart has repeatedly stressed that charity care is part of the hospital's mission.  "Beyond anything printed on a paper, it is a fundamental part of why we exist," said Stovall. "It's part of the Catholic health ministry, it's part of our heritage in Pensacola, and we intend to focus on that and live up to our commitments."

Now, what's most important is getting buy in from county commissioners.  "The journey is not over, we have a ways to go," said Stovall.  "We intend to continue to work with the county… and we're very optimistic we can have a positive outcome and do some great things in this community."

The joint venture has a target closing date of April 1.  County commissioners plan to conduct two public hearings before taking a vote on the matter.