Elbert Memorial Hospital’s Authority Board and AnMed Health of Anderson, South Carolina ended its partnership at the end of February, but a final agreement between the two hospitals will be firmed up through a memorandum of understanding (MOU) the authority considered in its monthly meeting Tuesday.
The MOU, sent by AnMed to the local hospital authority less than two hours before the meeting started Tuesday, spells out exactly what the hospitals have negotiated in terms of “settling up” financially.
In total, AnMed invested just over $3.8 million in Elbert County’s hospital in five years, whereas AnMed had agreed to invest just more than $2.8 million in that amount of time.
Authority Chairman Daniel Graves said AnMed had also agreed to assist in physician recruitment, but funds AnMed had committed toward that effort were instead used for other operations at EMH.
“With respect to outstanding loans (which the parties acknowledge in its aggregate is $1,000,000) made between the parties during the term of the Agreement, AnMed Health will forgive existing/accrued and future interest expense,” the MOU states.
Instead, AnMed has proposed, and EMH approved Monday night, that EMH will “enter into a no-interest loan estimated to be $460,111, with AnMed Health.”
That loan agreement would “describe monthly payments of $5,000 during the first year, and $10,000 a month thereafter, and will call for the entire loan due in the event the Hospital Authority defaults on any such payment.”
The arrangement, said Graves prior to the authority’s vote, means EMH is being asked to pay back $460,111 of the $3.8 million AnMed invested over the past five years.
“What AnMed has done resulted in Elbert Memorial Hospital staying open for another five years,” said EMH Authority Member Max Black.
With a few minor adjustments to the MOU issued by AnMed, the hospital authority voted unanimously to sign the document.