Health Midwest denied quick ruling

State Supreme Court sticking to timeline; delay may upset sale

? The Kansas Supreme Court said Thursday it likely would not rule until March 31 on the proposed sale of the nonprofit Health Midwest hospital system to the for-profit HCA Inc., upsetting a deadline set by HCA to complete the deal.

The court issued a two-page order denying a request from the companies for an expedited hearing of an appeal of a lower court ruling on the $1.13 billion sale.

Health Midwest sought the speeded-up hearing schedule because the chief executive officer of Nashville-based HCA has said if the proposed sale wasn’t closed by that date, the deal would have to be renegotiated.

But settlement negotiations continue among Kansas Atty. Gen. Phill Kline, Missouri Atty. Gen. Jay Nixon, Health Midwest and HCA.

“It is a disappointing ruling, but by no means does it mean that we won’t be able to complete the transaction,” said Health Midwest spokesman Chris Whitley.

Kline spokesman Whitney Watson said of the ruling, “It’s good,” but added it would not affect Kline’s work on the case.

“We’re still in constant contact with Health Midwest, HCA and the Missouri attorney general to try to resolve this,” he said.

Five weeks ago, Johnson County District Judge Thomas Foster approved the sale and struck down a new Kansas law designed to protect the state’s share of the assets from the transaction. However, he later ruled that Kansas was entitled to 20 percent of the net proceeds from the sale, expected to be about $700 million.

Health Midwest operates 13 hospitals. Most are on the Missouri side of the Kansas City metro area, but two are in Johnson County and one is in Iola.

Kline appealed the parts of Foster’s ruling that approved the sale and struck down the Kansas law. Health Midwest filed its own appeal, challenging how Foster said assets should be divided.

In the court’s order, Chief Justice Kay McFarland said Kline’s office has not yet received the transcript of proceedings before Foster, nor has it had an opportunity to outline its legal arguments in writing.

“The court must have time to give due consideration to the issues raised in order to reach an appropriate decision,” McFarland wrote.