President of the Jerusalem District Court Judge Vardi Zeiler on Thursday ordered a new tender be published for the sale of the Misgav Ladach Maternity Hospital compound in Jerusalem. Judge Zeiler also ordered the tender be published overseas. In addition, special administrator Acct. Doron Shorer has been appointed as temporary receiver of the hospital.
The ruling in effect cancels the sale process Shorer recently arranged, as well as his preliminary agreement to lease the compound to Naveh Sheva, controlled by the Clalit Health Fund and partners, for $11 million. These proceedings were contingent upon the court’s approval.
Zeiler ruled that the tender should be carried out by a “very professional independent and practicing group”. He said that Prof. Yitzhak Suari should be the man to head all perspectives of the tender.
The court ruled that the hospital’s operations should be halted for now in light of the Ministry of Health report on its condition. Misgav Ladach’s debts are estimated to total NIS 60 million.
The court also ruled that the winner of the tender must be determined according to several criteria, only one of which is the price the buyer will pay. The other criteria include continuing employment of the doctors and other staff, continuing Misgav Ladach’s operation as a hospital or medical facility and whether the deal is a sale or lease.
Representatives of investors and groups interested in buying or leasing the compound participated in the court discussion. Most of the participants, including representatives of the doctors and staff, National Insurance Institute and Income Tax Authority said they do not oppose publishing a tender.
Published by Israel's Business Arena on 3 March 2001