July 14, 2000

Partnership with Williamson Medical Center on hold

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Partnership with Williamson Medical Center on hold

Vanderbilt University Medical Center's proposed partnership with Williamson Medical Center is in limbo.

Earlier this week, the Williamson County Commission was scheduled to vote on a resolution that would create a joint venture between Vanderbilt and the Williamson County Hospital District to manage the hospital.

That resolution was withdrawn, and it remains unclear how — and if — the situation will be resolved. The county's negotiating team was to meet yesterday, July 13, but as of press time, no conclusions had been reached.

The next county commission meeting is scheduled for Sept. 11. The 12-member Williamson Medical Center Board of Trust is scheduled to meet July 27.

The two sides, which have been negotiating the proposed joint venture since last October, reached an agreement in late April and submitted it to the commission for approval.

Under terms of the proposed joint venture Vanderbilt offered Williamson County $18 million in cash and a note as well as an estimated $12 million in intangible assets, including the use of Vanderbilt's name and its marketing and clinical expertise.

In return, Vanderbilt would receive a 50 percent share of a new company that would have been formed to operate Williamson Medical Center. Vanderbilt also agreed to provide a $20 million debt guarantee, if necessary, to the new company during an initial 10-year term.