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Both entities of the proposed acquisition of Meadows Regional Medical Center by HCA came to a final agreement this week, but it did not happen haphazardly. Mike Calhoun, Chairman of Meadows Healthcare Alliance, (“The Holding Board”) said it took over two years for the negotiations to be satisfactory on both sides.

Meadows CEO Alan Kent said HCA will pay $73 million for all the assets of Meadows except for cash, investments, and certain excluded real estate. Net proceeds after assumption of HUD debt (the hospital mortgage) are expected to be just over $30 million which will be managed by the newly created Meadows Foundation, a 501©4 not-for-profit organization. $10.3 million will be placed in escrow against potential future liabilities.

Kent confirmed that current employees of Meadows Regional Medical Center are in good standing and their jobs are secure.  Under the acquisition, MRMC employees will be guaranteed that HCA will not terminate them without cause for one year after the entire transition has been approved by the Attorney General, and current employees’ salary levels with similar job titles and responsibilities will also remain in effect.  In fact, he said he believes that there will be even more people hired at the medical facility. He also added that HCA has employee benefit packages and incentives that a rural hospital cannot afford to offer.

More information on the acquisition of Meadows Regional Medical Center by HCA will be posted on this webpage in the coming days.

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