Committee To Work Out Hospital Transition

October 21, 2004

HUNTSVILLE - County Commission has approved a series of resolutions giving a specially-appointed committee the authority to work out the final details of a change in management firms at the Scott County Hospital.

That action came during the commission's regular monthly meeting held at the Scott County Office Building Monday night.

County Mayor Dwight Murphy, who appointed the five-member committee, began the night's action by saying that the specifics of both the termination agreement with Community Health Systems (d.b.a. East Tennessee Healthy Systems), and the letter of intent to enter into a lease agreement of the hospital from Attentus Healthcare, were still being negotiated.

The committee is composed of Murphy, County Attorney John Beaty, Chairman Pro Tem Mike Slaven, and Commissioners Jeff Watson and Rick Keeton.

By 12-0 roll call votes (with two commissioners absent), the following resolutions related to the hospital were approved Monday night:

*Authorizing the special committee to execute a termination agreement with CHS;

*Authorizing the committee to execute a management agreement (extension of the existing operating agreement) with CHS to operate the hospital during a 90-day transition period (November 1, 2004 through January 31, 2005).

* Authorizing the committee to enter into an agreement with Attentus Healthcare by approving "the final version" of a letter of intent from the company. This resolution also gives the committee the authority to negotiate provisions of the letter of intent from Attentus.

* And giving the committee authority to hire separate legal counsel (in addition to County Attorney Beaty) which is experienced in hospital transactions "in the event it feels it is necessary."

"This process is long from concluding," Murphy said, as he expressed his appreciation to the hospital Transition Team and the members of the commission who had worked narrowing the list of hospital management firm prospects from 13 to one. He stated, "this is the most important thing we'll do in this term of office . . . and I really appreciate all you've done."

Murphy also informed the commissioners that they would be advised of any major changes approved by the committee, and of the final action taken.

"We were still negotiating (with Attentus) as of an hour ago," Murphy said. Then, referring to an initial draft of Attentus' letter of intent provided to the commissioners, he added, "this will not be the latest one . . . the final (draft) will come to your home tomorrow."

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