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BJC seeks new lease with Boone Hospital Center or termination of partnership

COLUMBIA, Mo. - BJC Healthcare is looking to change its lease with Boone Hospital Center or leave Columbia all together. 

In a letter written in 2016, BJC officials state why the current lease is not working. 

BJC officials said the current lease is,"no longer responsive to what the hospital will need to succeed and thrive in the years ahead."

BJC has been partners with Boon Hospital Center for more than 30 years.

The current lease extends through Dec. 31, 2020, and would automatically renew for another five-year term unless either the Hospital Trustees or Christian Health Services terminates the lease by providing written notice in the month of December 2018 to the other party. 

BJC officials said a new lease would be required if BJC were to remain partners with Boone. 

According to the Assessment of Options for Boone Hospital Center, Progress Report, BJC wants a 30-year term with no exit except breach, BJC providing a fixed-dollar rent, establishment of a BJC-appointed, Columbia-based board as governing body for hospital accreditation and reduction or elimination of the annual capital expenditure requirement.

BJC officials said if they were to end their relationship with BHC they would help facilitate discussions with University leaders for a possible new partnership. 

Boone Hospital trustee Jan Beckett said, "the trustees are willing to consider a new lease agreement with a 30-year term, but BJC should submit a proposal to the trustees. 

If BJC does not wish to renew their lease, Boone Hospital has received proposals from Duke LifePoint, MU Health Care and St. Luke's Health System.

According to the assessment, the partnership with Duke would have the highest return potential. 

Boone trustees said if the BJC lease is not renewed, they would need assurance from any potential partner that the staff currently working at BHC would be held harmless from any negative consequences of transition. 

The release of the assessment comes weeks after BJC laid off 50 employees due to low patient volumes and declining revenue.

 


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