Logosm.gif (1927 bytes)
navlinks.gif (4688 bytes)
Hruler04.gif (5511 bytes)

Back to DC HealthCare Alliance and Health Care Issues main page

DC City Council 
Summary sheet on sale of Greater Southeast Community Hospital
October 19, 2007




Dorothy Brizill
Bonnie Cain
Jim Dougherty
Gary Imhoff
Phil Mendelson
Mark David Richards
Sandra Seegars


DCWatch Archives
Council Period 12
Council Period 13
Council Period 14

Election 1998
Election 2000
Election 2002

Election 2004
Election 2006

Government and People
Anacostia Waterfront Corporation
Boards and Com
Campaign Finance
Chief Financial Officer
Chief Management Officer
City Council
Control Board
Corporation Counsel
DC Agenda
Elections and Ethics
Fire Department
FOI Officers
Inspector General
Housing and Community Dev.
Human Services
Mayor's Office
Mental Health
Motor Vehicles
Neighborhood Action
National Capital Revitalization Corp.
Planning and Econ. Dev.
Planning, Office of
Police Department
Property Management
Public Advocate
Public Libraries
Public Schools
Public Service Commission
Public Works
Regional Mobility Panel
Sports and Entertainment Com.
Taxi Commission
Telephone Directory
University of DC
Water and Sewer Administration
Youth Rehabilitation Services
Zoning Commission

Issues in DC Politics

Budget issues
DC Flag
DC General, PBC
Gun issues
Health issues
Housing initiatives
Mayor’s mansion
Public Benefit Corporation
Regional Mobility
Reservation 13
Tax Rev Comm
Term limits repeal
Voting rights, statehood
Williams’s Fundraising Scandals


Appleseed Center
Cardozo Shaw Neigh.Assoc.
Committee of 100
Fed of Citizens Assocs
League of Women Voters
Parents United
Shaw Coalition



What Is DCWatch?

themail archives


Greater Southeast Hospital
Public/Private Partnership Summary

GSE Hospital Public Private Partnership: Specialty Hospitals of America, LLC and its affiliates ("SHA") have entered into an Asset Purchase Agreement ("APA") with Envision Hospital Corporation and Greater Southeast Community Hospital Corporation to purchase the land, facilities and equipment at Greater Southeast Hospital ("Hospital"). Closing is scheduled for November 7, 2007. History and current circumstances necessitate the District's financial assistance in this transaction. The District will enter into a public/private partnership for the purposes of: (i) creating a structure through which District funds may be used to provide financial assistance for the transaction; (ii) ensuring that the District's financial investment is adequately secured; and (iii) assuring the continued and improved operation of Greater Southeast Community Hospital.

District Assistance: The District will provide a $79 million investment into the Public/Private Partnership, which will disburse the funds as follows:

  • $29 million acquisition loan which will be allocated as follows: (i) $10 million acquisition of the Hospital; (ii) payment of a creditors note in the approximate amount of $9.75 million relating to the past bankruptcy; (iii) accounts payable in the approximate amount of $7.25 million payable to current vendors; and (iv) closing costs. The acquisition loan shall be repaid over 30 years, with payments in amounts equal to taxes that would otherwise be due on parts of the hospital or land.
  • $20 million working capital loan to be repaid over 10 years.
  • $30 million capital grant for medical equipment, initial capital investment, renovations to the physical plant at the Hospital.

All funding by the District will be utilized solely to clear existing claims on the Hospital and for the purchase of the Hospital site, equipment, improvements or operations thereon.

District Security: The District's financial investment in this transaction is protected through the following means: (i) the Public/Private Partnership; (ii) liens; and (iii) land use restrictions to be recorded against the property. The Partnership structure allows the District to (1) control the release of funds, where funds are used and how assets are held, and (2) control and protect against potential defaults. According the Partnership Agreement and its exhibits, funds provided by the District will be placed in escrow with an indepedent escrow agent who will hold the funds for release only with the District's consent. A portion of the Capital Equipment & Physical Plant Grant will be tied to financial, operational, and clinical performance measures at the Hospital. The Hospital shall maintain JCAHO Accreditation. Failure to meet performance measures will result in financial penalties.

The District will also protect its investment by filing and perfecting liens on the land and the hospital including fixtures, furniture equipment and movable and immovable assets. These liens will be evidenced by appropriate Deeds of Trust and UCC Financing Statements.

The District will require, through the use of Restrictive Covenants applicable to SHA and any purchaser of the Hospital, that the site be used as a hospital and for purposes relating to health care services.

Back to top of page

Send mail with questions or comments to webmaster@dcwatch.com
Web site copyright ©DCWatch (ISSN 1546-4296)