The proposed sale of nonprofit Colorado Health Foundation's $1.45 billion stake in seven hospitals to for-profit hospital chain Hospital Corporation of America (HCA) is still raising eyebrows, even as its expected to close later this year.
Earlier this year, the Foundation's former chair challenged the deal, and now a group of former board members are worried that the sale will produce a "legacy of disservice" to the public, reports the Denver Post. Their main complaint is that giving HCA full control of the hospitals will hamper public access to healthcare services and charity care.
At a hearing called by the Colorado Attorney General--who has the power to review the deal for community benefit--10 former Foundation board members highlighted previous HCA management issues, which led them to pay billions in government fines, notes the Post.
Other meeting attendees defended the deal, noting that HCA already operates the hospitals as the controlling partner and does so adequately, and that the $1.45 billion price could help the Foundation's efforts to enhance patient care and community service throughout the state.
Meanwhile, HCA plans to sell $500 million in senior notes, which may be used to purchase the Foundation's 40 percent stake in the joint venture, reports BusinessWeek.
For more information:
- read the Denver Post article
- here's the BusinessWeek article
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