Casa Grande hospital looks for investments after loss of federal funds

Screen Shot 2013-10-11 at 6.27.20 AMBy Donovan Kramer, Jr. | Casa Grande Dispatch

Denial of federal matching funds expected by Casa Grande Regional Medical Center has caused the hospital to pursue reorganization that could include a sale, at least in part.

The hospital had pursued funds totaling $7 million for the year ending last June 30 and $4 million for the first half of its current fiscal year, through Dec. 31. The funds would have come through a match of an assessment the hospital would have placed on itself through a Casa Grande city ordinance.

Obtaining the funds was seen as crucial for a restructuring of the hospital’s debt through the U.S. Department of Housing and Urban Development, which recently was denied as well, said Rona Curphy, president and CEO of the hospital. The restructuring would have saved $2 million a year.

“CGRMC is now considering potential partners that could help maintain and expand the CGRMC mission as a community medical center,” she said in a prepared statement released to the public Thursday. “The board of CGRMC and the management team are excited about the potential strength a new partner can bring to enhance the medical services provided to the Casa Grande community.”

Curphy said the reorganization could take various forms and would be the subject of negotiations. That might mean a sale of less than 100 percent ownership.

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