Medical centre at a foreclosure.

Washington successfully bid and took over a medical centre at a foreclosure for $20 million. The city is now the owner of United Medical Center – a financially troubled hospital.

City council member Jack Evans (Democrat/Ward 2) said he was very much concerned by this extra loading of debt. The hospital cannot be shut down. But the best option for this hospital was for the city not to take on the ownership. He added, “This could burden the city with substantial payments way into the future”.

Attorney General Peter Nickles said the city is desperately trying to find ways to generate revenue and cut down expenses. A grant was given by the district to build a pediatric emergency ward having all the best equipments. It is due to start operating from next September. It would be under Children’s National Medical Center. The city was also planning to provide treatment for mentally challenged children as well as adults at the United Medical Center.

Lawyer Jennifer Lav representing University Legal Service said the city has been talking about opening a pediatric psychiatry ward at this hospital. It would a move forward to giving local treatment for youths numbering hundreds who had to be admitted to various residential treatment centres outside the state. Many require medical as well as mental remedial attention that till now was not available locally. But Lav explained nothing new can be initiated without thinking of the money angle.

Jam Rappaort who is the chairperson of the previous owners Specialty Hospitals of America said, “We hope that Attorney General Nickles and his people care as much about turning around the clinical care and the physical facilities and equipment as the team at SHA and the wonderful professionals at UMC who we worked with to make the tremendous improvements that we accomplished over the last three years”. The ownership had been taken over by Specialty in 2007 as per a deal brokered by David A. Catania (Independent/ At Large) a council member. This deal prevented shutting down of the facility and asked the manger’s of Specialty to co-manage the unit.

Million have been spent by the city to update the facilities at the centre during the past two and a half years. In the latest court filings it was stated that Specialty that had been troubled by financial woes for a long time falsely led them to think that the finances had stabilized. But the hospital had been suffering from a loss of $1 million per month and had incurred a minimum of $20 million as debt.

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