A private hospital confirms that it is sold; nonprofit buyer seeks $ 600 million loan with backing from GovGuam | Guam News

Guam’s only private hospital is being sold.

A subsidiary of the Filipino owner of Guam Regional Medical City confirmed on Tuesday that it has reached an agreement to sell its physical assets and operations to a non-profit organization that will rename the Blue Continent Healthcare hospital Guam Medical City.

GRMC owner Guam Healthcare Development Inc. announced its deal to sell the private hospital on the same day the Guam Economic Development Authority held a public hearing on the proposed $ 600 million loan for the acquisition. of the hospital.

GovGuam will not be responsible for the loan, according to GEDA, but Gov. Lou Leon Guerrero is asked to certify that the hospital is meeting a public need so that bond lenders are granted a federal tax exemption on the proceeds of their investment. in Guam Hospital.

The buyer will hire the current owner of the hospital to supply the hospital staff, according to a press release from GRMC.

“This will include the same exceptional cadre of dedicated and committed staff who are currently addressing the acute care needs of the Guam community,” according to the current owner of GRMC.

Blue Continent Healthcare Guam Medical City will also be referred to as BCG.

“BCG plans to continue the ongoing strategic expansion of the hospital, including increasing its inpatient bed capacity from 136 to 186 beds and contributing to its healthcare infrastructure to better serve key strategic island nations. of the Blue Continent, including the Territory of Guam, Commonwealth of the Northern Mariana Islands, Federated States of Micronesia, Republic of the Marshall Islands and Republic of Palau, “the press release said.

Dr Gilbert Mudge, President of BCG, is quoted in the press release: “Ownership of the hospital by the new foundation will ensure better access to funding resources and consolidate BCG’s position as a primary provider of clinical care. advanced, especially cardiovascular, neuroscience, diabetes. , cancer, dialysis, rehabilitation and skilled nursing services on the blue continent.

“By making Guam the hub and center of health services in the region and by developing health infrastructure for the island nations of the Blue Continent, we will move forward as a stronger, mission-oriented organization,” said said the President and CEO of GRMC, Dr. Michael W. Cruz.

Blue Continent Healthcare Guam Medical City was formed in July in Delaware as a limited liability company.

It is not known what will happen to the remaining commitments GRMC made to GovGuam following the granting of tax breaks in 2015 under the administration of Governor Eddie Calvo.

Based on past GRMC estimates, this would generate $ 420 million in new tax revenue for GovGuam, more than double the $ 170 million tax allowance that has been given to the hospital over 20 years.

The tax breaks under the Certificate of Qualification program also require GRMC to provide $ 25 million in public contributions over the 20-year term of the QC.

In addition, the QC also requires the GRMC to treat patients with PID, according to the GRMC in 2015.

Under the QC, 75% of all GRMC employees must be US citizens or US residents.

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