PRESS RELEASE
Office of Councilmember David A. Catania
1350 Pennsylvania Avenue, NW, Suite 110, Washington, D.C. 20004
For Immediate Release: September 17, 2007
Contact: Ben Young
(202) 724-7772
byoung@dccouncil.us
http://www.davidcatania.com
CATANIA PRAISES AGREEMENT WITH SPECIALTY HOSPITALS OF AMERICA
SAYS THAT AGREEMENT WILL LEAD TO A NEW DAY IN THE HISTORY
OF GREATER SOUTHEAST COMMUNITY HOSPITAL
Earlier today, Councilmember David Catania (At-Large) praised the
agreement between the District and Specialty Hospitals of America
(“Specialty”), which he said would lay the foundation for an
“historic investment” in the healthcare of Wards 7 and 8. The
terms of the agreement were negotiated by the Mayor and were made public
at an early morning announcement at Greater Southeast Community Hospital.
“The Mayor has done a remarkable job putting this agreement
together,” said Catania. “We could easily be discussing how we
are going to cope with the closure of this hospital. Instead, I
believe that with a new owner and the proper investment, we will witness
the complete revitalization of this once great institution.”
The agreement consists of District grants and loans of up to $79
million. This includes a $20 million loan in working capital, which
will be paid back over 10 years and secured by a lien on the hospital
building. The agreement calls for a $30 million investment in equipment
that includes performance measures and penalties for the failure to meet
these goals. It also provides that the District receive 50 percent
of the proceeds from any future sale of the hospital by Specialty.
Finally, the agreement funds $29 million in acquisition costs, the
majority of which would be paid to local healthcare vendors, including
doctors and nurses, who have not been paid for their services by the
current owner.
“We have a long history in this government of giving away money with
no expectation of getting a return for it,” said Catania. “With
this agreement, we are doing the right thing by investing in the
healthcare of our citizens. However, we are also securing our
investment and holding the new owner accountable for any city assistance
it receives.”
Catania said that he hopes that the Council will undertake
consideration of the agreement at the legislative meeting scheduled for
October 2, 2007. |