The Amendment, which is the second to the Lease Agreement signed with Mercy in 2008, reinstates the rent payments payable by Mercy of $1 million per year, payments that had been eliminated from the lease in the first amendment to the lease in May 2009. In addition, Mercy would be obligated to pay the County an additional rent fee amounting to 15 percent of the total rent amount, or $150,000 per year, for various services provided by the County, each payable in monthly installments.
Also in the amendment, the County has agreed to pay to Mercy Health up to $1 million a year in charity and uncompensated care, payable in quarterly installments by the County. In the event that Mercy was to provide less than $1 million in charity care during the lease year, Mercy would pay the difference back to the County. All changes made to the Lease Agreement would be retroactive to January 1, 2011.
By combining the two changes made in the Lease Agreement, the County could see a gain of at least $150,000, should the lease with Mercy remain in effect though the end of 2011. In the event that a new operator is found before the expiration date of May 24, 2012, all the provisions set forth in the lease would come to an end, pending negotiation with the new lessee.
While terms of the Amendment have been agreed upon, County Attorney John Beaty expressed some lingering concerns with the document. “I’ve been trying for two years to get an answer from the State on the legality of the transaction. I’m more comfortable now with it, but not completely comfortable,” Beaty said. With a completed agreement, Beaty will once again contact the Attorney General’s office for an opinion.
The Commission passed the resolution by a 13-1 vote, with Commissioner Gerry Garrett casting the lone dissenting vote.