Navicent Health highest bidder for Milledgeville hospital in bankruptcy proceedings

Oconee Regional Medical Center in Milledgeville will be sold to Macon-based Navicent Health according to a ruling issued Friday by Judge Austin E. Carter of the U.S. Bankruptcy Court for the Middle District of Georgia.

Oconee Regional filed the necessary motions for the asset sale to the Prime Healthcare Foundation last month, which included the opportunity for other interested parties to submit bids to purchase the hospital.

Navicent Health submitted a bid Tuesday and participated in an auction that was held on Thursday and Friday. During an emergency hour-long hearing with Carter at 5 p.m. Thursday, conducted by conference call, much of the discussion was regarding two bids submitted by Navicent. One of those bids included Jasper Memorial Hospital, which has a leasing arrangement with Oconee Regional. Some of the attorneys representing various interests in the bankruptcy took issue with this bid.

By Friday morning’s hearing, Navicent had removed the bid with Jasper Memorial as part of the deal.

“Navicent was the prevailing bidder last night,” said Navicent’s attorney Dennis Connolly. He is a partner with the Alston & Bird law firm with offices in Atlanta and New York City.

Attorney Mark Duedall, a partner with Bryan Cave in Atlanta who represented the debtors, said the parties held a competitive auction. Prime Healthcare and Navicent were the only two bidders at the auction.

“Navicent had the highest opening bid,” he said. “Prime was not willing to offer any further bids.”

During his testimony Friday, Andrew Turnbull, managing director with Houlihan Lokey, a global investment bank, said Navicent’s bid was $200,000 higher than Prime’s bid.

When questioned about his view of the results of the auction, Turnbull said it would allow Oconee Regional “to remain open ... for at least the next five years and hopefully for much longer than that.” He added that it would preserve the jobs and continue to provide services needed in the community.

“I don’t believe (Oconee Regional) can continue as a going concern without the Navicent offer,” he said.

Ian Hammell, an attorney representing the bond trustee, U.S. Bank, said that the outcome of the auction “was difficult for the creditors and certainly for my bondholders.

“I have more than $29 million of bond debt and we are about to sell what may be the most important asset for $12 million,” Hammell said. “I will personally be a little upset by the financial results for a long time. But I know .... that this is the outcome of a long hard marketing effort. ... This is the best alternative so on that basis we reluctantly support (it).”

At the end of the hearing, Carter ruled that Navicent’s bid was in the highest one and in the best interest of Oconee Regional, its bondholders, its creditors and the community.

“While we are grateful for Prime’s interest, we are excited for this new opportunity with a respected, regional partner who understands our values, our culture, and our community,” Steven Johnson, Oconee’s interim chief executive officer, said in the release. “Our goal when we began this process over a year ago was to maintain a viable hospital in Baldwin County. We are proud to have accomplished that goal and believe patients and their families will be well served by Navicent Health long into the future.”

Navicent Health president and CEO Ninfa Saunders said the health care company would work with Oconee Regional “to ensure the continuation of healthcare services for the residents of the Baldwin County community and the surrounding area.”

This story was originally published June 30, 2017 at 5:12 PM with the headline "Navicent Health highest bidder for Milledgeville hospital in bankruptcy proceedings."