CPH consultant could earn $1.75M for successful deal

Posted: Tuesday, June 22, 2010

The consulting firm that is assisting Central Peninsula Hospital as it mulls possible governance structure changes will earn $1.75 million for any deal that the firm brings to fruition.

Any suitor that enters into a partnership with the hospital after consulting with Juniper Advisory, LLC will owe Juniper a $1.75 million "transaction fee."

The details of the transaction fee in the May 5 contract between Juniper and Central Peninsula General Hospital, Inc. - the nonprofit corporation that governs the hospital - were redacted in an initial public records request made by the Clarion.

Nearly a month after the Clarion's May 24 records request, the contract was released in full.

Hospital CEO Ryan Smith said Juniper wanted the opportunity to inform potential suitors about the transaction fee before going public with its details.

Meanwhile, CPGH, Inc. is paying Chicago-based Juniper $25,000 per month to pursue information on three governance structure options. The CPGH, Inc. board is independently pursuing information on three additional options.

Possibilities range from no change to the current governance structure to an outright sale of the publicly owned hospital.

This fall, the CPGH, Inc. board intends to recommend one course of action to the Kenai Peninsula Borough Assembly, which will ultimately cast the deciding vote on any governance changes.

Andrew Waite can be reached at andrew.waite@peninsulaclarion.com

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