Providence in real estate talks despite VHA deal

MAT-SU -- Providence Health System is still considering a purchase of 99 acres of raw land between Palmer and Wasilla on the Parks Highway a week after Valley Hospital Association voters approved a joint venture between Valley and Texas-based for-profit Triad Hospitals Inc. that would build a new hospital to replace Valley Hospital in Palmer.

The Providence deal first came to light two weeks ago, just days before the VHA vote, but the deal isn't as far along as was previously reported. At the time, Providence officials confirmed that the Catholic non-profit had an "option to purchase" 99 acres of undeveloped property just south of the Parks Highway and west of the Hyer Road interchange.

Bill Tucker, of Fairview-Parks Investors said earlier this week that the investment group is still talking with Providence but has two other buyers who are not from the health care industry. None of the potential buyers have a right to exclusive negotiations.

"The article was not necessarily precise as to what has taken place," Tucker said. "As a practical matter, nothing really has taken place."

Providence spokesperson Karina Jennings said her corporation remains interested in the Valley's health care market.

"It's my understanding that this is going to happen, and it's just that we are waiting on the legal work," Jennings said.

Alaska law requires health care companies to apply for certificates of need -- known as a "CON" -- from the state to build acute care facilities such as hospitals. It also requires hospital companies to apply for a CON in the case of some other improvements to existing hospitals if those improvements are worth more than $1 million.

It would seem that the 99-acre land deal would put Providence into position to file for a CON and build a hospital in the Valley, but Jennings said the corporation has no firm plans yet.

"We don't have any real definitive plans. We are doing extensive work to determine what the needs are in the area and how we can meet those specific needs," Jennings said. "I can tell you that we're not backing off. We are committed to providing services to the Valley, and we are looking for ways to do that … We certainly believe that people want Providence's services."

Valley Hospital officials confirmed that VHA has a list of potential locations for the joint venture's replacement hospital. VHA CEO George Larson was contacted but was unable to provide an interview. Through an administrative assistant, he left a message in which Larson said he couldn't talk specifics about potential locations at this time and that the Fairview-Parks Investor's property was not on VHA's list.