YAKIMA, Wash. (AP) - A local investment group has completed its purchase of the former Astria Regional Medical Center and the neighboring Astria Medical Office Building.
The $20 million acquisition, which closes Tuesday comes nearly two months after the U.S. Bankruptcy Court authorized the sale to Yakima MOBIC LLC, the Yakima Herald-Republic reported.
Tuesday’s sale comes as Astria Health works to emerge from Chapter 11 bankruptcy protection by the end of the year. A hearing for Astria Health’s reorganization plan, which it jointly filed with creditor Lapis Advisers, is scheduled for Friday.
Earlier, Astria Health attorney Sam Maizel said that sale would help reduce the organization’s outstanding secured debt by 20%.
Astria Regional Medical Center closed in January after Astria Health said it no longer had the financial wherewithal to operate the hospital. Astria Health has continued to operate hospitals in Toppenish and Sunnyside.
The Medical Office Building, previously known as the Astria Medical Office Plaza, currently houses Astria Health’s ambulatory surgery center. The center will continue operating under a lease agreement with the investment group.
The investment group plans to maintain health care uses for the hospital and medical office buildings.
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