Minneapolis-based Fairview Health Services is making construction plans after freeing up cash from the recent sale of its Red Wing Medical Center to the Rochester-based Mayo Clinic. Finance & Commerce reports major construction projects appear to be in the works for Southdale Hospital in Edina and Ridges Hospital in Burnsville.
Mayo Clinic paid $64 million to acquire the hospital and medical group in Red Wing, the Pioneer Press reports. Fairview also freed up about $54 million-worth of bonding proceeds allocated toward the Red Wing hospital and is seeking approval to spend the money elsewhere.
The Minneapolis-based health system is trying to move past an overly aggressive bill-collecting scandal involving its contractor Chicago-based Accretive Health. Fairview's board of directors ousted now former CEO Mark Eustis amid the investigation.
In June, Moody’s Investors Service downgraded Fairview's $836 million in debt. The bond rating agency cited a “significant downturn in financial performance,” as well as “potential reputational risks."