Search for a BRMC buyer is likely to take months
Published on March 10th, 1999
STONEHAM, MA - "We're just evaluating our options in Boston Regional."
This simple comment, uttered by Winchester Hospital spokesperson Deborah Trask, encapsulates what many people in a wide variety of businesses have been doing these past six weeks.
Since the decision by Doctor's Health Care Corporation early this year to pull out of negotiations to buy Boston Regional Medical Center (BRMC), the hospital has been sliding down the slippery slope of U.S. Bankruptcy Court, drawing interest from several prospective buyers. At the present, however, a deal has yet to be finalized, mostly due to the steep $65 million debt on the property and the hope of many creditors to resolve their years of misfortune on the Woodland Road site.
According to Frances Crunk, acting CEO of Boston Regional, "We're working with various interested parties about the site and hope to provide the community with the best possible solution."
This solution is an area of speculation, and the rumor mills have been churning up companies who are vying to be the next owner of the property. But, due to confidentiality clauses which are inherent in large bankruptcy cases, few have been verified.
The Marriott hotel corporation has been one such company which has risen hopes in local circles. Discussions have begun on the town level to change bylaws in order to allow such usage and ease the negotiation process between BRMC and Marriott or other hotel organizations. If the deal were completed, the town would benefit from major tax revenues from the 40 acre parcel of land - a monetary flow which was not previously realized due to BRMC's non-profit affiliation.
When contacted by the Independent, a Marriott spokesperson neither confirmed nor denied the company's interest in the property.
Hinting that the interest may be there, however, was Crunk who stated that the town's zoning bylaws may be an issue that needs to be resolved.
"We're prepared to work with any parties as quickly as possible, but the process could be delayed because of problems with zoning."
Two companies which have made their interest known and which would not require any change in zoning are Lahey Clinic and Winchester Hospital. Both have confirmed that they are presently entering into talks with lawyers for BRMC and its many creditors.
A spokesperson for Lahey Clinic, a for-profit hospital which had plans to enter into a joint venture with BRMC's fertility clinic prior to the closing, says that a purchase agreement would be beneficial for her company as well as the community.
"We've been affiliated with Boston Regional Medical Center in the past," Pam Bush explained. "We're interested in the community and concerned about the community. We're always looking at new ways to deal with the area."
How strong is that interest?
"Yes, we're interested. We'd love to better serve the community. We've had discussions about it (the purchase), but there are many, many people who also have.
"We've worked with BRMC before and we definitely have an interest in the Stoneham community."
Winchester Hospital, a non-profit entity, was rebuffed in its efforts to enter into a deal with BRMC early last year. The decision by BRMC administrators to pursue a pact with Doctor's Health Care Corporation of Arizona eventually led to the hospital's demise.
Despite that fact, Winchester Hospital is presently pursuing a new deal which would increase its strength in the area and offset at least some of the defunct hospital's debt.
"Winchester Hospital remains interested in the Boston Regional Medical Center campus," Trask says.
Both Trask and Bush alluded to a possible combined effort on the part of Lahey Clinic and Winchester Hospital to resolve issues on Woodland Road.
"There's nothing really formal at this stage," Trask said of the possibility. "We are committed to serving Stoneham and see Boston Regional as a part of our future."
Bush says, "We're exploring lots of options. Working with Winchester Hospital is certainly an option. We haven't made any formal plans in those terms, but it's a possibility."
Crunk says that, given the past usage of the property and the standing structures, a medically-affiliated buyer would be a positive.
"It seems to make sense to try to maintain some type of medical service here," she said. "The parties that have expressed interest are varied, however."
Despite the significant intrigue which many companies are showing, a deal does not seem to be imminent.
According to Crunk, the process is still in its infancy and a resolution could take months.
"I don't think that it (the search) will go on and on, but it certainly will take time," she said. "I think the creditors are interested in seeing a sale as quickly as possible to maximize their return ... but it will most likely take longer than (two months)."
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