Senate Bill 2942

AN ACT TO AUTHORIZE THE BOARD OF SUPERVISORS OF COAHOMA COUNTY, MISSISSIPPI, TO EXECUTE THE EXTENSION OF THE LEASE WITH CLARKSDALE HMA, INC., AND HEALTH MANAGEMENT ASSOCIATES FOR HEALTHCARE-RELATED FACILITIES ON COUNTY-OWNED REAL PROPERTY; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) The Board of Supervisors of Coahoma County, Mississippi, is hereby authorized and empowered, in its discretion, to extend, renew or otherwise provide for an additional period of up to ten (10) years of the current lease, as amended and previously extended, originally entered into between Coahoma County, Mississippi, acting through the Board of Supervisors of Coahoma County, and Clarksdale HMA, Inc., and Health Management Associates, Inc., dated the 28th day of December 1995, and extended by agreement dated December 15, 1998, for all or any part of the real property and/or improvements thereon covered by the lease, as amended, according to such terms and conditions as set by the board of supervisors.

(2) In the event the board of supervisors determines to extend the lease, prior to setting the length and rental rate for the extended term, the board shall contract with a certified public accounting firm, a law firm or competent professional healthcare or management consultants to review the then current operating condition of the hospital in order to determine a rental rate for the extended term that is consistent with the fair market value. The review shall at minimum consist of the following:

(a) A review of the community's inpatient facility needs based on current workload, historical trends and projections, based on demographic data, of future needs;

(b) A review of the competitive market for services, including other hospitals which serve the same area, the services provided and the market perception of the competitive hospitals;

(c) A review of the hospital's strengths relative to the competition and its capacity to compete in light of projected treads and competition; and

(d) An analysis of how much revenue should be derived from the lease.

(3) Upon completion of the analysis, the annual rental rate for the extended term shall be within the range of revenue amount determined by the analysis for the extended term, with the length of the extended term as determined by the board of supervisors to be in the best interest of the county. In the event that the lessee shall determine to accept that amount as rental for the extended term, the lessee shall have the right to accept in writing, the extended term for an additional period of up to ten (10) years after the termination of the then existing lease. Written acceptance of the extended term shall be delivered by hand or first-class mail to the County Administrator and the Chancery Clerk of Coahoma County within a reasonable time period prior to the expiration of the original extended term to be determined by the board of supervisors, or the original extended term shall expire according to its terms. Upon acceptance of the extended term and lease amount, the parties may also make such amendments to the lease as are agreed upon by the parties and in the best interest of the county.

SECTION 2. This act shall take effect and be in force from and after its passage.