Alaska city and regional group agree to hospital purchase

    SITKA, Alaska (AP) — A city government in Alaska has approved agreements enabling a regional health consortium to take over operation of its community hospital.

    The Daily Sitka Sentinel reported that the City and Borough of Sitka Assembly voted 5-2 Monday to approve asset purchase and facilities lease agreements that will allow Southeast Alaska Regional Health Consortium to operate Sitka Community Hospital.

    The newspaper reports that the consortium's board will consider approval of the agreements April 26, with a likely June 30 closing date.

    The newspaper reports that the consortium will take over operations at the hospital and its health care business after the summer closing.

    Officials said the consortium will pay a total of about $16.7 million, including $1.3 million payable upon closing and $700,000 annually for 22 years.

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