Due to the newly passed House Bill 711, Doctors Memorial Hospital, along with thousands of other community hospitals, recently was mandated to assess the hospital’s fair market value.
BONIFAY — Due to the newly passed House Bill 711, Doctors Memorial Hospital, along with thousands of other community hospitals, recently was mandated to assess the hospital’s fair market value.
The bill requires that any county, district or municipal hospital requiring a governing board look into the possible benefits to the community from the sale or lease of their hospital to a non-profit or profit entity before a deadline of June 30.
Patrick Simers, Executive Vice President of Principle Valuation, LLC, which specializes in the appraisal of health care facilities, explained that Doctors Memorial Hospital was one of 3,000 that have already completed their evaluations and that it was only due to the mandatory enforced House Bill 711 that the hospital was evaluating their fair market value.
“This was a fair market value assessment to compare community ran hospitals compared to other hospitals of similar size and capacity,” said Simers. “During our finding the overall value and net value of the hospital was very positive. The overall assessment was that it was best not to sell the hospital and that it should remain a community hospital.”
He added that the hospital was “strong in their market.”
“If it was to be sold they usually drop the community benefits, which would be a shame because this hospital does a lot for the community,” said Simers. “With the amount of man hours they put in and their occupancy capacity, they are strong in their market right now.”
He said that the Doctors Memorial Hospital Board of Trustees asked if there was a strong and compelling reason to sell and that he told them there was none.
“The services they are providing to the community are far too invaluable,” said Simers.