BUSINESS

HCA price for nonprofit group OK'd

Unanswered by the Kansas court decision is how many entities will oversee the disbursement of proceeds from the sale.

By Mike Norbut, AMNews staff. Feb. 24, 2003.

A Kansas district court judge ruled earlier this month that the potential sale of 13-hospital nonprofit Health Midwest to for-profit HCA Inc. was appropriate in terms of its $1.1 billion price, but he stopped short of weighing in on the hot-button issue of how many foundations should handle proceeds from the sale.

Johnson County District Judge Thomas E. Foster said 20% of the proceeds from the sale of the nonprofit hospital chain should remain in Kansas, but he didn't say if separate foundations should be established in Kansas and Missouri to manage the money. Kansas City, Mo.-based Health Midwest has hospitals in both states.

Missouri Attorney General Jay Nixon gave his blessing to the proposed deal in January, but the agreement called for the formation of only one foundation and for 10% of the proceeds from the sale to be earmarked for Kansas projects.

After debts are paid off, there should be about $700 million to $800 million left, with the foundation shares coming out of that total.

The ruling "is one step closer to enabling the closing of this deal, but we need to reconcile some of the findings of Judge Foster with our agreement with the attorney general of Missouri," Health Midwest spokesman Chris Whitley said.

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