February 12, 2014

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St. Francis Hospital to sell to Westchester Medical Center

SFH to become part of WMC

POUGHKEEPSIE – The auction to sell the assets of Saint Francis Hospital has been cancelled and the Poughkeepsie-based hospital is seeking US Bankruptcy Court approval to sell them to Westchester Country Health Care Corporation, parent company of Westchester Medical Center.

In new court papers, attorneys for Saint Francis, said the Westchester Med offer is “substantially and materially better than those provided for in the stalking horse asset purchase agreement made by Health Quest, parent company of Vassar Brothers Medical Center in Poughkeepsie".

The court document states that, “In light of the regulatory hurdles to approve a sale to the Stalking Horse arising from the existence of an alternative bid, the debtors determined that it would be in the best interests of the debtors’ estates and their creditors to negotiate an arm’s-length sale of the debtors’ businesses to WMC, rather than take the risks… that are inherent in an auction process wherein the Stalking Horse is a participant.”

At the same time, Health Quest CEO Luke McGuinness issued a statement Tuesday saying that organization’s board of trustees has decided “not to participate further in the bidding process.”

Nevertheless, he said Health Quest remains convinced that taking over Saint Francis “would have helped to drive down medical costs for our entire region and would lead to better access to enhanced medical services for the entire service area.”

 A US Bankruptcy Court hearing is scheduled on the new proposal for Tuesday, February 18.  


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