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Mayor Adrian Fenty
Press release on agreement to sell Greater Southeast Community Hospital to Specialty Hospitals of America
September 17, 2007




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Agreement Councilmember Marion Barry press release
Councilmember David Catania press release

Government of the District of Columbia
Executive Office of the Mayor

For Immediate Release
September 17, 2007
CONTACT: Dena Iverson
202.727.6914 (office)
202.340-7834 (mobile)

Fenty Signs Agreement to Aid Sale of Greater Southeast to Specialty

City’s only hospital east of the river will remain open with improved services

Jim Rappaport, Chairman, Special Hospitals of Washington; City Council Chairman Vincent Gray; Councilmember David Catania; Mayor Adrian Fenty, signing agreement to purchase Greater Southeast Community Hospital, September 17, 2007

DC Mayor Adrian M. Fenty signed an agreement in principal with Specialty Hospital of Washington at Greater Southeast Community Hospital today.  The agreement outlines a number of investments by the District of Columbia in Greater Southeast Hospital to facilitate the purchase of the facility by Specialty from Envision Hospital Corp. The agreement allows Specialty to purchase the hospital while maintaining and improving the quality of care delivered.

“This is truly a public/private partnership to benefit the residents of the District of Columbia, particularly those living east of the Anacostia River,” said Fenty. “By facilitating the sale of Greater Southeast Community Hospital to Specialty, the District of Columbia ensures that access to high quality healthcare is available to every District resident.”

Pending Council approval, the agreement outlines a total of $79 million in investments in Greater Southeast by the District of Columbia. A $20 million portion of the total investment will be a working capital investment to assist in the day-to-day operations and costs of the hospital. Specialty will repay the investment to the District over a 10-year period. The District will also provide $29 million in funds to pay off the current outstanding debts owed by Greater Southeast to be repaid in site-specific taxes over a 30 year period.

“On behalf of all of my partners at Specialty Hospital of Washington, we are looking forward to working with the Mayor, his administration and the Council to continue our mission to bring quality medical care to the citizens of the District, as we have been for the last several years. We all have much work to do to bring the care to the 7th and 8th that they deserve,” said Jim Rappaport, Chairman of Specialty Hospital of Washington.

In addition, $30 million of the investment will go toward equipment and renovation of the facility.  The capital investment will be tied to performance measures that, if not met by Greater Southeast, will result in financial penalties to be paid to the District. The agreement also designates 50 percent of all sales proceeds to the District in the event that Specialty ever sells Greater Southeast.

In addition to agreements regarding financial investments the agreement outlines specific requirements for continuation and establishment of services provided to the community by Greater Southeast. The agreement requires that the emergency room will continue to operate and that Greater Southeast will maintain an obstetrics/gynecology facility. Specific community services include providing space for primary care services, investing in local youth programs, establishing a Community Advisory Board for the hospital and increasing health training programs with Southeastern University. 

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