The Logan Medical Center Board of Trustees unanimously approved the asset purchase agreement for the sale of the hospital to Mercy Health System of Oklahoma in a special meeting on August 27th.
After a thorough selection process ending in May, Mercy was chosen as the leading candidate to assume ownership of the hospital. Mercy Health is in four states with 29 hospitals and nearly 1,500 integrated physicians.
The Logan County Commissioners met Monday afternoon and approved the definitive agreement. The expected time to close the deal is 30 days.
According to the document, the purchase is virtually for all real property and operating assets.
The total cost comes in at $7.26 million dollars and in the agreement Mercy will continue to operate a critical access hospital in Logan County with a surgical unit, an emergency room and diagnostic services for a minimum of five years.
Mercy will commit to inject $2.5 million in capital into the hospital over the next two to three years.
Nine doctors have signed with Mercy and essentially all employees will remain on staff. In addition, an advisory committee with four community representatives will be formed and the LMC trust will dissolve in 12 months.
Some of the highlights of the $7.26 million price tag are $2.2 million will be paid at the time of closing and $2 million will be paid 12 months after closing. Another $2.1 million will be paid 24 months after closing.
Mercy Health and Logan Medical Center did not immediately respond to GNP emails.
In Oklahoma, Mercy has locations in Ardmore, El Reno and Oklahoma City.
Guthrie News Page will have more as it becomes available.