Home » NEWS » Health » Hospital to look for buyer with 'stalking horse' bid

Hospital to look for buyer with 'stalking horse' bid

NATCHEZ — Natchez Regional Medical Center will seek a “stalking horse” bid in which a potential buyer makes an initial offer to set the floor for an auction.

Hospital officials tell The Natchez Democrat that three health care providers have agreed to participate.

“We are hopeful that within a matter of weeks we will have identified a stalking horse,” said Healthcare Management Partners director Clare Moylan.

Healthcare Management Partners was hired by Adams County in July to help negotiate the sale of the county-owned NRMC.

The three potential bidders have been given access to proprietary information about the hospital’s finances, employees and outlook for coming years.

In the stalking horse process, HMP will negotiate a selling price with one of the interested parties. Once that price and any stipulations are decided, the agreement with the stalking horse becomes the base bid for the hospital’s sale.

If no one outbids the stalking horse, the hospital is automatically sold to the stalking horse, which would have provided the county with a security to ensure the sale.

Once the stalking horse candidate is identified, the agreement has to be ratified by the board of supervisors. The county has to advertise the sale for 30 days.

An election on the sale could be necessary if 1,500 residents sign a petition objecting to the sale. If no petition is filed, the sale can proceed.

Hospital administrators have said that the sale is necessary because changes in health care law will make maintaining an independent, rural hospital logistically and financially difficult.

Officials have said making the hospital part of a larger system is the only way to attract physicians and a larger health care system can afford to replace the hospital’s aging physical plant.

HMP marketed the hospital for sale following its 2008 bankruptcy, and had permission to use a stalking horse process, but at that time no buyer came forward.

NRMC opened in 1960 as Jefferson Davis Memorial Hospital.

BEFORE YOU GO…

… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.

If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.

Click for more info

About Megan Wright

Leave a Reply

Your email address will not be published. Required fields are marked *

*