The proposed buyer of Greater Southeast Community Hospital will be expected to revive the facility’s good name or face hefty financial penalties in return for a generous package of loans and grants from the District.
D.C. Councilman Marion Barry, meanwhile, voiced strong opposition to the sale on Monday, which he termed a “gift.”
If it wins the support of the Council — action could come as early as Oct. 2 — the $79 million agreement between the city and Specialty Hospital of Washington will bring to a close the eight-year reign of Greater Southeast’s owner, Envision Hospital Corp. The only hospital east of the Anacostia River has virtually collapsed during the Envision era.
“Every person deserves access to high quality health care, which is why we’re so excited about this particular announcement,” Mayor Adrian Fenty said from the hospital’s auditorium.
Under the agreement, Portsmouth, N.H.-based Specialty faces $2,000 per day in fines if Greater Southeast fails to earn accreditation by 2009, to meet national health measures by 2010, or to meet monthly averages for emergency room drop times by 2011.
Financing terms call for the District to provide Specialty a $30 million grant for physical upgrades and equipment, a $29 million loan to pay off the hospital’s creditors unpaid vendors, and another $20 million loan for “working capital.” Much of the money will come from the $220 million D.C. tobacco settlement fund.
“It is a bargain,” said D.C. Council Member David Catania, chair of the health committee. “Our priorities are straight.”
Furious that he wasn’t involved in the negotiations, Barry, who represents Ward 8, called the agreement “unacceptable” and a misuse of local funds. Barry claimed an earlier iteration of the deal was all loans. What it’s become, he said, is a “worse deal for the taxpayers” — one he will fight against.
Jim Rappaport, Specialty chairman, said his company has already identified $20 million worth of equipment needs in addition to critical building system upgrades. He said he was “stunned” that people were willing to still work there given the conditions.
