NATCHEZ, Miss. (AP) — A federal bankruptcy judge could look as early as Thursday at the proposed sale structure for the Natchez Regional Medical Center.
The Adams County-owned hospital is in negotiations with Community Health Systems for its purchase.
The Natchez Democrat reports (http://bit.ly/VBYXZH) the Mississippi Development Authority agreed that the hospital's sale should be considered an economic development project and gave its blessing to the sale.
Adams County Board of Supervisors Attorney Scott Slover said MDA's action means the hospital can now take its sale structure to the federal bankruptcy court for approval. A status conference is scheduled Thursday in U.S. District Court in Natchez.
As outlined, the bidding process would make Community a stalking horse bidder, which means the price it negotiated with the Natchez hospital would be the bottom bid when the hospital is placed on the market.
If no one outbids the stalking horse, the sale will automatically go to Community.
A judge would hear any objections to the motion of approving the bidding process before making a ruling.
NRMC officials announced the hospital would have to file bankruptcy in February, stating at the time the hospital had $3 million more in financial liabilities than assets.
Information from: The Natchez Democrat, http://www.natchezdemocrat.com/