Attorney general will review hospital merger.Byline: Tim Christie Christie can refer to:
The fate of McKenzie-Willamette Hospital's proposed partnership with Texas-based Triad Hospitals Triad Hospitals is a Fortune 500 company based in Plano, Texas. It operates 54 hospitals in the United States. In February 2007 it received a merger/buyout offer from another company, and then in March 2007 it received a superior merger/buyout offer from Community Health Systems of now rests with the Oregon Oregon, city, United States Oregon, city (1990 pop. 18,334), Lucas co., NW Ohio, a suburb adjacent to Toledo, on Lake Erie; inc. 1958. It is a port with railroad-owned and -operated docks. The city has industries producing oil, chemicals, and metal products. Attorney General's Office. The hospital submitted copies of its agreements with Triad to the attorney general this week. State law requires the state agency to review any transaction that transfers the assets of a not-for-profit Not-for-profit An organization established for charitable, humanitarian, or educational purposes that is exempt from some taxes and in which no one in profits or losses. group to a for-profit company. McKenzie-Willamette and Triad signed a letter of intent last January to form a joint venture to operate the existing hospital and build a replacement hospital. McKenzie-Willamette and Triad plan to close their deal after the Attorney General's Office approves the agreements, spokeswoman Rosie Pryor said Thursday. The documents submitted to the attorney general don't include some details that are still being prepared, such as an appraisal of McKenzie-Willamette's assets. The hospital plans to forward the appraisal, prepared by an Atlanta firm, as soon as it's available. The attorney general has indicated he'll obtain an independent appraiser's opinion, Pryor said. Details from the documents include: Assets and liabilities the two partners will put into the joint venture, such as land, buildings, equipment and cash. It also clarifies what each side isn't contributing; for instance, McKenzie-Willamette will retain its cash assets to pay off its bonded debt. How the new company will be governed gov·ern v. gov·erned, gov·ern·ing, gov·erns v.tr. 1. To make and administer the public policy and affairs of; exercise sovereign authority in. 2. and operate. A six-member governing board Noun 1. governing board - a board that manages the affairs of an institution board - a committee having supervisory powers; "the board has seven members" will oversee operations, with three members appointed by McKenzie-Willamette and three appointed by Triad. The McKenzie-Willamette members hold exclusive rights to terminate the hospital's CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and to name the board chairman. A promissory note promissory note, unconditional written promise to pay a certain sum of money at a definite time to bearer or to a specified person on his order. Promissory notes are generally used as evidence of debt. , which clarifies Triad's intent to immediately contribute $20 million of its $80 million commitment to the joint venture. The $20 million will be used to operate the existing hospital and to add unspecified Adj. 1. unspecified - not stated explicitly or in detail; "threatened unspecified reprisals" specified - clearly and explicitly stated; "meals are at specified times" services. The balance will be used when needed to build a new hospital. McKenzie-Willamette's right to demand that Triad buy out the community's 20 percent ownership share in the joint venture at any time from the start of the joint venture to 10 years after a replacement hospital opens. McKenzie-Willamette also has the right to buy additional shares in the new company, up to 49 percent. Some information wasn't included to protect what McKenzie-Willamette says is proprietary business information. WHAT'S NEXT The Oregon Attorney General's Office has scheduled a public hearing on the proposed merger between McKenzie-Willamette Hospital and Triad Hospitals Inc. The hearing is at 6:30 p.m. Tuesday, June 24, at Willamalane Adult Activity Center, 215 West C St., Springfield. The public record will be kept open for a week after the hearing and the attorney general may render a decision as early as July 9. |
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