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07/30/10   |   By

D.C. purchases United Medical Center | DC Metro Area Medical Malpractice Law Blog

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The District of Columbia has purchased United Medical Center for $20 million after foreclosing on the property.  There were no other bidders at the foreclosure sale, and no money will change hands.

In late June, the city council voted to foreclose on the property because Specialty Hospitals of America, the hospital’s owner, defaulted on its lease agreements.  The council created a nonprofit tasked with running the hospital, which council member David Catania called “a de facto safety-net hospital in the District”.  D.C. has already spent $70 million on the hospital and may have to continue subsidizing the services it provides.

According to recent reports, the city stands to lose $1 million per month.  There are IRS liens of $3.9 million.

We previously wrote about this deal here.

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