Hammonton's Kessler Memorial Hospital closes
The hospital’s board of directors terminated the agreement signed Friday for cardiovascular surgeon B. Reddy Dandolu to buy the hospital, Interim Chief Restructuring Officer Michael Sandnes said in a statement released by the hospital.....Continue Reading
This is a VOX recording.
It is condensed and not in real time.
“The buyer could not obtain and transmit the necessary funds, as agreed upon, in order to continue operation of the hospital,” Sandnes said.
Dandolu agreed to pay a non-refundable $300,000 down payment by the close of business Monday when he signed a letter of intent to purchase the hospital for a reported $7.5 million. That money was to be used to help cover a $500,000 payroll shortfall that prevented the hospital’s employees from getting paid last week.
A $200,000 loan from the township to cover the balance was contingent upon the hospital receiving Dandolu’s down payment first. Employees are expected to receive partial paychecks today, Sandnes said.
“Every effort will be made to ensure that all outstanding pay due will be issued at the earliest opportunity, as this remains the board’s highest priority,” the statement said.
Meanwhile, the hospital has reached a tentative agreement with AtlantiCare Regional Medical Center to establish satellite emergency services at Kessler, according to Board President Ronald Sahli.
Sahli said in the release that the board had no choice but to cease acute care operations, having exhausted every avenue to keep the hospital.
“We recognize the dedication of our employees in staying with us during this difficult period, but the hospital has reached a point where we cannot legally or in good faith continue to find a partner to keep the hospital’s operations intact,” Sahli said. “We look forward to seeking alternative uses for our facility to continue to provide essential health services to the residents of Hammonton.”
This story was taken from the news source stated above. It is not the opinion of The Elwood Vol. Fire Company or it's members.
