Hospital auction set

Property and equipment of the former Pioneer Community Hospital of Patrick will go on the auction block Dec. 20, according to information from the law office of Michael A. Condyles, a Richmond attorney.

The sale of the property at 18688 Jeb Stuart Highway, Stuart will take place at 1 p.m. at the entrance to the Patrick County Circuit Court Clerk’s office, which is located at 101 Blue Ridge Street, in Stuart, according to a legal announcement.

The property was conveyed to Pioneer Health Services of Patrick County, Inc., in a deed from Patrick Hospital Investors, LLC, dated September 10, 2009, the announcement stated.

The property, which includes 10.078 acres, is located in the Town of Stuart and the Mayo River District of Patrick County.

The sale also includes improvements, any and all fixtures and any and all personal property, the announcement shows.

The property will be sold as is.

A deposit in the amount of 10 percent of the bid may be required of the successful bidder at the time of sale, with the remainder due and payable on the closing date.

The successful bidder will be required to close within 30 days of the date of sale.

All loss or damage to the property from the time of sale and before settlement shall be at the risk of the successful bidder.

The buyer also will be required to pay all closing costs.

The hospital filed for bankruptcy in 2016. It closed in September.

Virginia Community Capital (VCC) held a large first lien on the property, according to previous reports. The lending agency asked the bankruptcy court to abandon the property, with plans to exercise their options.

“Their options are basically foreclosure,” Town Attorney Chris Corbett has said.

Economic development officials have said they view the foreclosure as a fresh start for the hospital.

Debbie Foley, director of the Patrick County Economic Development Authority, said the impending sale will not impact officials’ efforts to extend the facility’s Acute Care Hospital license, which is set to expire at the end of 2017.

The licenses are issued by the Virginia Department of Health, Foley said, adding a hospital cannot operate without a license.

The department has two licensing cycles: one mid-year and another at the end of the year, Foley said. To beat the current deadline, an application must be made by the end of business on Dec. 4, she said.

The Economic Development Authority and the county are working with state legislators on an extension, but no action is expected on that until after the Jan. 10 start of the General Assembly session, Foley said.

She anticipates legislators will agree to seek a one-year extension of the license and make it retroactive to Jan. 1, Foley said. However, “we don’t have anything to review as of yet, and we don’t know how specific or general” the proposal will be.

Providing the license is extended, a new buyer can begin the process to change the name, Foley said, adding the license would remain intact through that process.


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