Court-Ordered Auction – Acute Care Hospital, Rural Health Clinic, Licensure & Ancillary Properties

Tranzon Asset Advisors has been appointed by the U.S. Bankruptcy Court to manage and conduct an auction of the Pineville Community Hospital, Rural Health Clinic and ancillary properties and fixtures/equipment.  The Hospital is an operating and licensed 120 bed acute care hospital, 108 acute care and 12 geriatric Psychtric with Kentucky swing bed contract and 30 skilled nursing beds.  In addition to the hospital, bidders will have the opportunity to bid on the Rural Health Clinic and all personal property as well as all transferable licenses and Certificates of Need. 

This auction process that has been sanctioned by the U.S. Bankruptcy Court-London Division will be conducted by Sealed Bid with the possibility of a second round of bidding through private negotiations or online auction.  Bids deemed acceptable by the Trustee are subject to Court approval.  All property will be sold free and clear of any liens and encumbrances, the buyer(s) will not be responsible for any back taxes or other previous indebtedness.   Bid forms are available in this information package or may be obtained from Tranzon upon request.  Bidder(s) may bid on one or more Lots to specifically tailor the grouping of assets that they desire. 

An example of a common grouping or combination bid would be where a buyer desires to purchase the physical hospital facility, along with the necessary licenses and certificates of need and the fixtures and equipment (personal property) related to the hospital.  In this illustration the bidder would need to enter a bid on Lots 2, 6 & 7 in their sealed bid.

Those offered Lots are described as follows:

Lot 1 – Entirety Offering of all Subsequent Lots

Hospital includes Emergency Room, Intensive Care Unit, Radiology, Operating Room, Physical and Occupational Therapy Suites, Pharmacy and more

Separate and Free Standing Medical Office Building with Parking

In addition to the Real Estate, the successful bidder will be purchasing:

All necessary Certificates of Need and Licensure in place.  Certificates of Need and Licensure may be separately available

All medical equipment, Furniture, Fixtures & Equipment, and Personal Property as currently located at the hospital or Medical Office Building

All computer systems

All Business and Patient Records

Single Family Residence – 111 Valley Road – Pineville, Kentucky

Single Family Residence – 115 Valley Road – Pineville, Kentucky (Currently Rented)

Prime U.S. 25E Frontage Commercial Building Site

Lot 2 - Hospital Facility and three Parking Lots – Real Estate Only

This Lot consists of the real property of the Pineville Community Hospital, located at 850 Riverview Avenue, Pineville, Bell County, KY 40977 with all current and utilized fee and leased parking areas situated on 8.76+/- acres encompassing approximately 143,539+/- total sq.ft. of improvements.  The improvements are an attractive brick and stone three-story facility with Administration, ER, OR, PT, Dietary, secure Psychiatric, Radiology, Laboratory and other areas commonly found in acute care hospitals.  This Lot does not include any personal property, furniture, fixtures and equipment additionally there are no certificates of need (CON) or licensure included in this Lot.  THIS OFFERING IS THE REAL ESTATE AND IMPROVEMENTS ONLY.

Lot 3 - Single Family Residence – 111 Valley Road

This Lot focuses on this conveniently located and attractive single family residence in Pineville.  This 2,300± sf house includes 3 bedrooms, 2 bathrooms, a basement, fireplace, attractive yard and attached garage.  It was purchased by the hospital for expansion room and should be considered in any combination bids for the hospital.  Close to all the amenities a homeowner or landlord would desire. 

Lot 4 - Single Family Residence – 115 Valley Road

This Pineville residence is currently rented on a month to month basis for $450/month.  Great for the real estate investor or owner occupant.  This 3 Bedroom, 1 Bathroom residence is great for a young family just starting out or downsizing from a larger home.  There is 1,028± sf of living space available with this property.  Close to all the amenities you would need.  The house was purchased by the hospital for expansion room and should be considered in any combination bids for the hospital.   

Lot 5 - Rural Health Clinic and Parking Lot – Real Estate Only

This Lot provides a bidder the unique opportunity to bid on a well maintained 28,466± sf commercial office building with adjacent and secondary parking lots, overhead drive thru patient drop-off, ground floor pharmacy, elevator, office space for up to 8 physician offices, a dental office currently leasing, physical therapy tenant and operating rural health clinic including exam rooms, x-ray rooms, phlebotomy, waiting, office and staff break area.  This property is conveniently located in the Pineville business district downtown.  This building located at ____ has multiple use capabilities.  It is situated on 0.96 ± acres while the secondary parking lot is located separately on 0.77 ± acres of fee owned real estate.  All current tenants are considered ‘at will’ month to month but would prefer to negotiate new leases.   

Lot 6 - Certificates of Need and Licensure for Hospital & Skilled Nursing

The State of Kentucky issues all necessary Certificates of Need and licensure for the operations of a health care facility, including acute care, long term skilled care, geriatric-psychiatric services, emergency departments, radiology and more.  They are the key to purchasing an operating hospital/health care facility.  Without Certificates of Need you no longer have a hospital.  The hospital also cannot operate efficiently without appropriate licensure which is included in this Lot.  This Lot provides you the opportunity to own all the transferable CON and Licensure related to the Hospital.  These items will be transferred via Bill of Sale and with appropriate application to governing authorities.

Lot 7- Personal Property - Hospital based

This Lot focuses on the personal property in the Hospital.  This includes all owned medical equipment, furniture, fixtures and equipment, along with other pieces of personal property as currently located at the Hospital.  All personal property and equipment will be sold as a whole.  No bidding on individual pieces of equipment will be permitted.  The auction firm, trustee, associated counsel or U.S. Bankruptcy Court do not warrant in any manner the accuracy, feasibility, working condition or location of any personal property. 

Lot 8 - Personal Property – Rural Health Clinic

This Lot focuses on the personal property in the Rural Health Clinic.  This includes all owned medical equipment, furniture, fixtures and equipment, along with other pieces of personal property as currently located at the Clinic.  All personal property and equipment will be sold as a whole.  No bidding on individual pieces of equipment will be permitted. The auction firm, trustee, associated counsel or U.S. Bankruptcy Court do not warrant in any manner the accuracy, feasibility, working condition or location of any personal property. 

Lot 9 – Prime Commercial Outlot located on US 25E

This outstanding .38 acre commercial site is directly adjacent to the Dairy Queen restaurant with high visibility on U.S. 25E and a dedicated curb cut for entrance and exit.  This parcel may be purchased separately or in a combination bid. 

Sealed Bids are due July 15th by 5:00 pm ET

Please submit Sealed Bids to: edurnil@tranzon.com , tmast@tranzon.com or edwardstrustee@gmail.com 

Tranzon Asset Advisors, 1108A North Dixie Avenue, Elizabethtown, Kentucky 42701 

U.S. Bankruptcy Court for the Eastern District of Kentucky London Division Case No. 18-61486 – J. Claire Edwards, Chapter 7 Trustee