UPDATE: Massillon to acquire Affinity properties
The tentative resolution, announced Thursday during a hearing in
A court hearing, initially scheduled to debate whether Affinity would be forced to remain open for roughly three more months, instead unveiled some of the details of the proposed settlement that would transfer the property and buildings on the Affinity campus to the city for
"The property will be transferred free and clear of any financial liens," said
As a result, he said, the city can pursue potential options, including an employee or community-owned hospital. Another possibility is for a hospital or medical interest to acquire and operate the facility, Plakas said.
He noted that community-owned hospitals have operated successfully across the country. Such a model would require professional management, Plakas explained. "We wouldn't expect the mayor's office to run a hospital," he said.
In the short-term, under the proposal,
Plakas said there is no timetable for reopening the hospital following its closure.
"I would like to think it could be done substantially sooner than one year," he said.
"It's hard to argue with the ability to control your own destiny," the attorney said following the hearing. "It's hard to argue with the benefit of receiving over
"The (potential) downside is you end up with an empty building," Plakas said. "Right now we know if nothing is done we're going to end up with empty buildings; it's easy to be a naysayer or critic and then nothing gets done.
The potential "far, far outweighs any downside investment of time and treasure and talent."
The property and buildings are valued at
When medical equipment, furniture and other items are included, the total value of the property and assets is estimated at
Within hours of the proposed settlement being reported, the city had inquiries about future hospital plans, Plakas said late Thursday afternoon.
"There has been a significant amount of interest shown by third parties who are in the healthcare business," the attorney said. "We're very pleased ... (and)
people are already recognizing this is a great opportunity."
When Affinity announced a
Costs to the city
The city would have expenses related to utilities, maintenance and insurance related to the buildings, Plakas said.
He said that the city would also incur costs related to assuming the medical office leases of a handful of properties Affinity doesn't own. Two of the leases expired at the end of last year, he said. Other leases expire in March and September. The longest lease runs until
While the city ultimately will be responsible for paying the unexpired leases, it also presents an opportunity to continue to lease them as medical offices or other uses, Plakas said. A specific monetary figure for what the city will owe monthly or annually on the leases was not available, the attorney said, noting that factors such as building occupancy will impact the amount.
"The key is to have availability of proper office space to keep the medical community intact going forward as we look for effective ways to continue the hospital and medical services," Plakas said. "The good news is ... the flexibility to control your own fate."
Foundation for the future
Prior to announcing the closing, Affinity officials had said in court filings the hospital had been unsuccessful in finding a buyer. Affinity also said in court papers the hospital has sustained large financial (now more than
Plakas said that the union representing Affinity nurses has researched the subject and disputes the financial losses cited by Affinity.
Resurrecting the hospital will require a robust community-wide effort, Plakas said.
"We believe that this proposed resolution enables the community, community leaders and community foundations to have a substantial base from which they can continue the proud tradition and community benefit of a local hospital," Plakas said during the court proceeding.
Judge
Once the formal resolution is reached, the parties agreed Hartnett will retain jurisdiction over the case for 90 days to enforce the agreement. The judge noted the settlement documents had not been finalized.
No final agreement yet
When The Canton Repository requested a copy of the proposed settlement, Dingwell, said no settlement-related documents have been filed with the court and it will take at least a week for lawyers on both sides to draft a formal agreement.
The settlement will render moot the city's lawsuit against Affinity as well as a challenge filed earlier this week by Affinity with the
The hospital will be closed in accordance with industry protocols and standards, Plakas said at the hearing.
Plakas praised the efforts of
Looking forward, Plakas admitted that a lot of work remains to reconstitute the hospital, acknowledging that an element of risk is inherent to any business endeavor.
"This isn't like (taking over) a candy shop or hamburg joint," he said. "In any community, a hospital is always one of the top three or four employers so it takes a concerted community effort to attract businesses like that and maintain businesses like that."
"It's easy to be a naysayer and it's easy to say, 'What about this potential problem and that potential problem?' And there are always potential challenges, and those people who refuse or are too timid to try to meet the potential challenges will never be successful."
Reach Ed at 330-580-8315
On Twitter@ ebalintREP
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