St. Mary's proposal in jeopardy
HUNTSVILLE — “Concern” and “disappointment” were two words heard repeatedly in an hour-long meeting between officials of St. Mary’s Health System and Scott County’s Board of County Commission at the Scott County Office Building here Thursday evening.
Debra London, president and CEO of St. Mary’s, informed the commission that several weeks of good-faith negotiations to assume the lease of Scott County Hospital may be in jeopardy.
She explained that St. Mary’s had met its deadline to submit a proposal, but Attentus has submitted a counter-proposal and has revealed “other parties” have expressed interest in assuming the lease.
“It has come to our attention other parties are now interested in assuming the lease,” London said, adding “this poses some concerns for us . . . I thought we had an agreement.” She later said that she was also disappointed with a “change in terms” being proposed by Attentus.
When asked by Fourth District Commissioner Alan Reed if the “other parties” interested in Scott County Hospital included Covenant Health Care, London responded that she had heard that rumor.
London said that following a 45-day due diligence period, St. Mary’s submitted its proposal to Attentus on Oct. 2. A few days later, Attentus submitted a counter-proposal, asking that the deal be closed by Nov. 30 (which London said “was impossible”), and that St. Mary’s assume Attentus’s health care provider number.
She said St. Mary’s countered by suggesting a closing date of December 31, and gave tentative approval for assuming Attentus’s provider number, even though that would mean that St. Mary’s could result in assuming some liabilities it doesn’t know about.
London told the commission that since then there have been no further communications with Attentus. “They have not returned my call,” she said.
Despite its support of St. Mary’s assuming the lease of the hospital, County Commission’s “hands are tied,” due to its contractual agreement with Attentus, said Seventh District Commissioner Mike Slaven.
County Attorney John Beaty told the commission it “can’t make a decision until Attentus comes to you with what they want . . . . In order to move on we need to come to terms with what Attentus wants,” he said, adding that if they did not accept Attentus recommendation, it could lead to arbitration.
Several members of the commission urged that a meeting be held with officials of Attentus to find out what’s going on, and County Mayor Rick Keeton said he would attempt to do so.
London told the commissioners that St. Mary’s was “still very excited about the possibility of a partnership with Scott County Hospital.” She added that it has been “a really good relationship already for us,” and termed it “a good cultural fit.”
Seventh District Commissioner Willie Boyatt summed up the commission’s reaction to the news that the contract negotiations were in jeopardy when he said, “I think what we’re seeing is the true side of Attentus . . . this commission is behind St. Mary’s.”
Boyatt went on to urge St. Mary’s to “go as fast as you can go” in reaching a contractural agreement with Attentus, and the commission “will do all it can do to help you come to Scott County.”
Other commissioners expressing their support for St. Mary’s were Third District Commissioners Ernest Phillips and Joel Newport, Fifth District Commissioner Rothel “Tub” Cross, First District Commissioner Odeva Byrd, and Fourth District Commissioner Dennis Sexton.
It was also revealed by several of the commissioners that St. Mary’s has the backing of the medical staff and employees of the hospital, as well as the community.
Near the end of Monday’s meeting, Mayor Keeton informed the commissioners that he had received a letter from the Scott County Hospital Board expressing its “solid, one hundred percent support for St. Mary’s.”
The first news of Attentus desiring to surrender its lease of the Scott County Hospital came on August 24, when St. Mary’s released a short, four-paragraph announcement that it had signed a letter of intent with Attentus to assume management of the hospital.
Three days before the 45-day due diligence period began, officials of St. Mary’s appeared before county commission, asking that if it was successful in assuming the lease, it would like to be removed from the obligation to build a new hospital, and be given a two-year extension of the lease in exchange for a capital commitment to improve the existing facility.
A straight lease assumption of the facility would leave Attentus as the principal contractor and make St. Mary’s a “sub-contractor,” Attorney Beaty explained at that meeting.
The first three-year period of Attentus’s lease of the hospital expires on January 31, but has a guaranteed a two-year extension should it choose to exercise that option.