Bowie Memorial: What Next?

Bowie Memorial: What Next?

Bowie Memorial Hospital board member’s plans to receive grants and federal funding is now in the past.

Lynn Heller, Hospital board CEO, said the board has discontinued negotiations with the investment broker, the Colmar Group.

Board members attempted to pursue The New Markets Tax Credit, but the hospital did not meet the qualifications since 20% of the population is not at or below the poverty line.

Another stipulation, the hospital must be declared a distressed medically under-served area. Although Bowie Memorial is an under-served area time is a factor, and board members are not able to wait for confirmation that it is distressed.

Heller said that is not the only problems they came across with the Colmar Group.

            “We could not confirm a lot of the stuff that we were told,” said Heller.

With no guarantee of gaining potential investors the board said paying $25,000 for a proposal was not the best way to go.

The board is now moving forward and has four potential bidders interested in the hospital.

Heller said hospital officials are making sure they will not be in the same situation they found themselves in with the Brough Group. To ensure that, the hospital board's expectations will be laid out plain and clear this time.

In order to make the purchase, bidders must show earnest money in the amount of 10% of the total bid amount, and provide a letter from their bank showing liquid assets by February 15th.

There is one more big change.

            “The board is not saying that the purchase price is a million five, the board is leaving that up to bidders,” said Heller.

He hopes this will set the tone for a competitive environment and possibly increase the chance of a higher bid.

Yet the hospital board is still unsure of one thing.
“Do we include the accounts receivable, do we include the cash we have and what real estate is all going to go with it?” said Heller.

Bowie Memorial board members will meet next Wednesday to open the bidding process.

The final sale contract deadline is on the 15th, and at that meeting board members will go over the proposals from potential buyers.

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