JACKSON (AP) — The University of Mississippi Medical Center plans to lease Grenada-Lake Medical Center for at least 20 years, paying for the lease by taking on the hospital’s $35 million in long-term debt.
The College Board’s Finance Committee discussed the plan in a closed session Wednesday and the board is expected to vote today.
The Grenada County Board of Supervisors, which owns the 141-bed hospital, voted late last year to enter into talks with UMC after seeking proposals.
Under the agreement, UMC would start managing the hospital Sept. 1, with the hospital paying the university $26,000 a month for four months.
The larger lease would begin in 2014, and could extend up to 50 years, if both sides agree. It would cover $24.3 million in debt principal and $11.2 million in interest. UMC would also pay for future capital improvements, maintenance, insurance and utilities.
Gov. Phil Bryant had signed a law earlier this year that would allow UMMC to buy the hospital, but the parties chose another route after protracted negotiations.
Vice Chancellor for Health Affairs Dr. James Keeton said UMC will expand services and use the hospital to train more physicians as the medical school expands.
