Needles, CA: Documents signed and escrow closed last Friday on Colorado River Medical Center.
At a Thursday special meeting of the Board of Hospital Trustees and Needles City Council, members voted to approve the Resolution No. 2013-20 approving a Second Amendment to Asset Purchase Agreement by and among the City of Needles and Needles Municipal Hospital aka Colorado River Medical Center and Community Healthcare Partner Inc. and authorizing and directing other actions to effectuate the “Initial Closing” on the sale of Needles Municipal Hospital.
As seen in the picture, Board of Hospital Trustees President Terri Anderson, City of Needles Mayor Edward Paget, and Bing Lum of Community Healthcare Partner Inc. signed for documents included the assignment and assumption, list of initial closing contracts, bill of sale, a bill of sale for the pharmacy assets, and certificates.
Needles City Attorney John Pinkney to members of the Board of Hospital Trustees and Needles City Council that Board of Hospital Trustees Clerk Cheryl Sallis and the City of Needles’ Finance Department went through to determine what the city will get once all is said and done in terms of the purchase price.
The signing of the documents lead the way for escrow to closes on Friday for the sale of Colorado River Medical Center and estimated $2.2 million dollars, but the purchase price is technically $2.577 million dollars.
The City of Needles is accountable for certain expenses and those will be paid out of the purchase price. After those payments, the City of Needles should get approximately $1,445 million dollars for the sale.
From that amount, the $360,000 advance will be deducted, $170,000 will be used to pay payroll-related expenses such as paid time off to employees, and $180,000 will be held back for obligations to Computer Programs and Systems, Inc.
Accounting to Needles City Attorney John Pinkney, there is another amount owed to CPSI and it’s between $13,710 and $45,000 and the exact amount has not yet been determined.
Also, members of the Board of Hospital Trustees and Needles City Council talked about debt that will be owed by the City of Needles at the end of the sale of the hospital.
Accounting to Needles City Attorney John Pinkney, about $250,000 in accounts payable, $276,200 for tail insurance, and $39,000 for directors and officers liability insurance.
Needles City Council Members Linda Kidd and Jim Lopez were absent at Thursday’s special meeting due to conflicts with the sale of the hospital.
Those in the attended congratulated Bing Lum of Community Healthcare Partner Inc. for hanging in this long to buy the hospital.