Contractors Reuven Ella and Moshe Sela submitted the highest bid to acquire the Misgav Ladach Hospital compound in Jerusalem - $12 million, most of which is designated for paying debts to Discount Bank, employees and other creditors.
Other bids were submitted by developers Gad Ze’evi, Yaakov Engel, and SBA, who as far as is known bid $7-10 million. A decision to sell the hospital requires the approval of specially appointed manager CPA Doron Shorer and the Jerusalem District Court.
”Globes” has learned that Ella and Sela are interested in acquiring Misgav Ladach because of its location on a 10-dunam (2.5-acre) plot in the Katamon neighborhood. The developers plan to construct protected housing on the site, with a nursing section. They also promised to continue operating the hospital and even expand it by constructing a new wing.
According to the town building plan, the plot is designated for health services construction. Protected housing with a nursing section is considered to fit this definition. The hospital management is known to support the plan.
The Ministry of Health this week ordered the veteran hospital closed, due to its financial state and the lack of drugs and medical equipment. Patients will be distributed among other Jerusalem hospitals in the coming days.
Misgav Ladach’s debts are estimated at NIS 60 million ($14.5 million). The hospital is owned by an NPO. Various explanations have been given recently of the causes and circumstances under which the hospital acquired its heavy debts.
Misgav Ladach, founded 190 years ago, is Israel’s oldest hospital. It was established at the initiative of Baron Rothschild for the Jewish residents of the time. The hospital moved to its current location 14 years ago. Misgav Ladach has 49 beds.
The NPO owning the hospital owes an estimated NIS 15 million to the employees, among other things to provident funds. It also owes NIS 6 million to Discount Bank and has accumulated other debts to drug and medical equipment suppliers and service providers.
Published by Israel's Business Arena on February 20, 2001