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January 31, 2012

Resolution will split hospitals

From Staff Reports

— Murray County Sole Commissioner Greg Hogan will hold a called public meeting today to approve a resolution that agrees to “terms of release” between the Murray Medical Hospital Authority, Murray Medical Center and Hamilton Health Care System, according to a release from the commissioner’s office.

The 4 p.m. meeting is in the Courthouse Annex at 121 N. Fourth Ave.

Included in the resolution is a guaranty of $2.5 million on a promissory note from the Hospital Authority to Hamilton Health, approval of a transaction term for Hamilton Health to hold a second priority lien on Hospital Authority assets, and approval of a $2.5 million line of credit for the Hospital Authority.

The Hospital Authority decided in June to take Murray Medical Center independent. It had been managed by Hamilton for about a decade. Authority members said at the time that the 42-bed hospital should be able to save money by running independently. They set a date of Dec. 1, 2011 for separating from Hamilton, but in November both entities agreed to delay up to two months Murray’s separation from Hamilton.

The Hospital Authority said in November that transferring employee benefit plans, insurance programs and licenses was taking longer than expected. They said then both sides believed the transfers should be completed no later than Wednesday.

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