WLKM Radio 95.9 FM
A Flint-based health care organization is going through steps following its recently announced interest in acquiring Sturgis Hospital.
Insight has signed a letter of intent to acquire Sturgis Hospital, which has been looking for an investor-buyer in recent months. The hospital has been struggling financially and recently switched to a rural emergency hospital format to stem costs. The REH setup enables the hospital to provide outpatient and lab services while maintaining an emergency room.
The Sturgis City Commission recently approved the due diligence interest from Insight, and authorized Sturgis City Manager Andrew Kuk and city attorney TJ Reed to sign associated paperwork, including a summary term sheet highlighting purchase conditions.
The hospital, which has bond obligations to the city, has had two parties interested in acquiring it. The other entity, Asker Corp., provided its paperwork several weeks ago.
Insight is a nonprofit organization, and would acquire the hospital for $3.3 million, paid over 11 years.
City and hospital officials said they hope an agreement with one of the two interested parties can be made in coming weeks.
