Sale of Sturgis Hospital moves forward

Sturgis municipal officials have completed the sale of Sturgis Hospital.

Completion of the transaction allowed Sturgis Hospital Inc. to finalize terms of its acquisition by Asker Corp., including a management agreement and financial support of the hospital.

That agreement will be in place until the acquisition is approved by the Michigan Attorney General’s office.

The agreement included a $3 million payment to the city in exchange for release of all obligations of Sturgis Hospital Inc. under a sublease on hospital improvements, including 10 years of remaining bond payments totaling about $8.5 million.

The agreement also provided for the release of all city liens and security interests in the hospital created as part of the sublease. The city itself continues to be responsible for remaining payments under the bond issue, and payment from the transaction will be used to offset a portion of those remaining costs.

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