Clock is Ticking for Two Parties Interested in Reopening LG Hospital

There are two parties interested in reopening St. Mark’s Medical Center as a hospital.

That’s the good news. The bad news is that they are running out of time to do so.

Those parties have less than two months to get a deal done before the facility with go up for sale to the highest bidder who “could develop the property however they deem beneficial, as long as it meets applicable laws and regulations. They would have no obligation to use it to provide healthcare to our community,” said St. Marks board chair Dudley Piland.

Here’s more from Piland on the latest status of La Grange’s hospital, which closed back in October because of financial difficulties “On February 14th Lument, the then-current holder of the mortgage for St. Mark’s Medical Center (SMMC), notified SMMC that they assigned the mortgage to the United States Secretary of Housing and Urban Development (HUD) effective February 12, 2024. HUD representatives estimate it will take 45 to 60 days for the assignment to be finalized. During this short 45-60 day window, SMMC will continue to work with parties that have expressed interest in an asset sale which, during this short window, will not require a formal competitive bid process. HUD has indicated it could approve an asset sale if they have reasonable expectations that they were getting more than they would in a public note sale. Should HUD not accept any of the offers during the asset sale, they will go through a public note sale which is a competitive sealed bid process for bidders prequalified by HUD.

SMMC sent a letter earlier this week to Mississippi-based Progressive Health Group (PHG) – which has been interested in buying the hospital for months – and one other entity currently interested in the asset sale process that outlined the basic criteria for a proposal which must be submitted to SMMC by March 7.

“Since SMMC is still the mortgagor, HUD requests the SMMC Board to make a recommendation for HUD’s consideration. However, HUD will make the ultimate decision on which, if any, asset sale offer will be accepted,” Piland said.

“One of the major benefits of an asset sale is that a form of healthcare will likely be reestablished in our community. The two parties that have expressed interest in an asset sale have both indicated an intention to use the assets to once again provide healthcare to our community. If an asset sale does not occur and HUD proceeds with a note sale, the successful bidder could develop the property however they deem beneficial, as long as it meets applicable laws and regulations. They would have no obligation to use it to provide healthcare to our community.”

Piland said that if other parties are interested in participating in the asset sale process, notify Michael Morgan ( mmorgan@communityhospitalcorp. com) immediately as time is of the essence.