Trans­fer law doesn’t ap­ply to HCA buy­out: Suthers

Modern Healthcare - - Late News -

Colorado At­tor­ney Gen­eral John Suthers de­cided that HCA’s pro­posed $1.45 bil­lion buy­out of the Colorado Health Foun­da­tion’s 40% in­ter­est in the HealthOne joint ven­ture does not fall un­der the Colorado Hos­pi­tal Trans­fer Act. But his of­fice will con­duct two pub­lic hear­ings later this month on the deal, ac­cord­ing to a news re­lease. In a let­ter to a lawyer for the foun­da­tion, Deputy At­tor­ney Gen­eral Geoffrey Blue wrote that the deal does not meet the act’s stan­dards be­cause the foun­da­tion nei­ther owns a 50% stake in the joint ven­ture nor ef­fec­tively con­trols it to­day. The at­tor­ney gen­eral’s of­fice, how­ever, will re­view the deal un­der its com­mon-law au­thor­ity over char­i­ta­ble as­sets. The pub­lic hear­ings will be con­ducted Sept. 26 and Sept. 27 at two HealthOne fa­cil­i­ties. Crit­ics, in­clud­ing a former HealthOne board mem­ber, have urged Suthers to con­duct the re­view un­der the hos­pi­tal trans­fer act to sub­ject the deal to greater scrutiny. HCA Se­nior Vice Pres­i­dent Vic Camp­bell, speak­ing at an in­vestors’ con­fer­ence be­fore Suthers an­nounced his plans, said the com­pany ex­pected to close the deal in the fourth quar­ter. If Suthers ap­proves the deal, Camp­bell said, Nashville-based HCA would be ready to close the deal the next day.

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