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 a 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.