Sale of Health Midwest brings millions to charities in Kansas, Missouri

? Two charitable foundations, one based in Missouri and the other in Kansas, have received more than $500 million from proceeds of the $1.13 billion sale last year of Health Midwest facilities in the two states to HCA Inc.

The distribution was announced Thursday by Community Health Group, the nonprofit successor to Health Midwest. The Missouri-based Health Care Foundation of Greater Kansas City got $409 million. Just over $99 million was given to the Kansas-based REACH Healthcare Foundation.

Health Midwest was a nonprofit system that operated 13 hospitals in Missouri and Kansas. Most of them were on the Missouri side of the Kansas City area, but there were two in suburban Johnson County, Kan., and one in Iola, Kan.

When the planned sale to the for-profit HCA was announced in 2002, attorneys general in the two states challenged Health Midwest’s plans for disbursing the assets. That led to litigation that eventually was settled, creating the foundations.

“We’re delighted about the announcement,” said Harry Jonas, chairman of the Health Care Foundation of Great Kansas City. “We’re delighted to have this amount of money to distribute to the Kansas City community.”

REACH Foundation board chairman Mark Parkinson called it a “great day for the citizens of Kansas and Missouri.”

“Through the hard work of many individuals, we now have an opportunity to improve the lives of people in this area,” he said.

Community Health Group chairman Ronald Goldstein said the transaction “will improve access to health care in our community for years to come.”

The Missouri foundation hopes to start making grants by the end of the year, and the one in Kansas in the first quarter of next year.