Southeast Hospital to Be Sold for $31 Million

"We haven't seen" it, Tangherlini said. "If they expect any city involvement, we'll have to talk about that."

He said Mayor Adrian M. Fenty (D) was aware of Specialty's interest over the last several months and "is supportive of a transfer of ownership."

"We knew all along this could happen, and in the right hands this could be a valuable asset," Tangherlini said. "We're excited this could continue and improve quality health care east" of the Anacostia River.

Specialty came to the District in late 2005 when it began running the former MedLINK Hospital and Nursing Center Capitol Hill. It then purchased Hadley Memorial Hospital from Arizona-based Envision and began offering similar long-term acute care and skilled nursing care there.

Specialty Chairman Jim Rappaport said last night that Greater Southeast would offer "a vastly broader array of medical care to the community" under the new ownership. The 110 traditional hospital beds likely would be increased by several dozen and support a strengthened emergency department, intensive care unit and obstetric services, he said.

Several hundred beds would be added to create a "medical mall," including an adolescent and adult psychiatric unit, care for patients needing often lengthy, specialized care because of illness or injury and elderly patients requiring nursing home services, Rappaport said.

Specialty intends to put "significant operating capital into the process," he said.

Within the next month, now that they have a purchase agreement, company executives hope to present their plans to the community. The expected changes include renaming the 41-year-old hospital on Southern Avenue. "Regardless of the good intentions of . . . Envision, those good intentions have not been met," Rappaport said. "And it's important that a new age be opened with a different name."

Company executives and city officials emphasized that potentially difficult negotiations lie ahead. Yet their announcement last night offered the first real possibility in years for a new future for Greater Southeast. In contrast, the fate of the troubled Prince George's Hospital Center is no closer to resolution.

Robert Malson, president of the D.C. Hospital Association, endorsed Specialty's purchase without reservation. "Since they've gotten to town, what they've done for the long-term acute needs of the city has been fantastic," he said.

Envision Chairman Paul Tuft, who has been pilloried for Greater Southeast's decline, said he wouldn't look back when its sale is completed.

"I feel like I'm passing the baton on to a much better future," he said.

Staff writer David Nakamura contributed to this report.