The buyer has 90 days to close the deal, according to court filings. The new owners are David and Russell Galbut of Miami and Richard Kresch, a New York City manager of psychiatric facilities. The sale price equates to $16,216 per bed.
That price compares to the $91,623 per bed figure in the pending $35-million sale of the 382-bed Parkway Regional Medical Center in North Miami Beach. Miami-Dade county commissioners approved that sale Nov. 28. Miami-based Jackson Memorial Hospital is buying the asset from Dallas-based Tenet Healthcare Corp. and plans to rename the facility Jackson North Medical Center. The deal is expected to close by year's end.
According to county real estate records, Russell Galbut is a principal in Crescent Heights, a condominium conversion group that bought the hospital's 2.2 acres and its two buildings for $34 million in 2004. At that time, the former nonprofit operator of the hospital, South Shore Hospital, had $30 million of debt, according to county real estate records. If the deal closes, the new buyers would rent the facility from Crescent Heights.
South Beach Community Hospital filed for Chapter 11 protection on Feb. 27, listing no assets and total debts of at least $5.3 million. Of the 113 creditors listed, Birmingham, AL-based Regions Bank was the largest creditor, owed $2.16 million. South Beach Heights, a division of Crescent Heights, was owed $1.1 million.
Miami Beach civic sources in a position to know tell GlobeSt.com the South Beach Community Hospital transaction is significant because the community has a dire shortage of hospital beds for mental health patients. The new owners couldn't be reached by GlobeSt.com's deadline but local sources say the Alton Road hospital may operate solely as a psychiatric facility. The only operating full-service hospital in Miami Beach is Mount Sinai Hospital.
A 10-story, hurricane-damaged building adjacent to South Beach Community Hospital, owned by Crescent Heights, is expected to be refurbished and open in 2007 as the Hebrew Home, serving nursing home residents, Miami Beach civic sources tell GlobeSt.com.
When the hospital closed its doors earlier this year, it became the first hospital in the US to lose its Medicaire and Medicaid privileges To reopen the hospital, the new owners must first ask the Florida Agency for Healthcare Administration to approve a license transfer and then apply to Medicare for approval as a provider for federal health plans, local medical industry sources tell GlobeSt.com.
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