Gov. McMaster denies debt restructure for GHS-Palmetto Health me - FOX Carolina 21

Gov. McMaster denies debt restructure for GHS-Palmetto Health merger

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GHS and Palmetto Health partnership (Source: SCbettertogether.org) GHS and Palmetto Health partnership (Source: SCbettertogether.org)
SOUTH CAROLINA (FOX Carolina) -

SC Governor Henry McMaster has thrown a wrench in plans for Greenville Health System and Palmetto Health's debt restructuring as part of their new partnership.

McMaster denied their requests to approve a $1.5 billion debt restructuring.

The hospitals announced in June of 2017 that they would be coming together to form the largest non-profit health care system in South Carolina - The SC Health Company.

On December 29, 2017, McMaster issued a letter to the CEOs of both GHS and Palmetto Health, ultimately denying approval of refinancing bond debt currently held by both health systems - halting the merger. The refinancing, had it been approved, would have allowed both health systems to transfer ownership of the debt from GHS or Palmetto Health independently, to The SC Health Company as a single non-profit organization.

In the letter, McMaster said Richland and Sumter County approved the refinancing, adopting responsibility for GHS's debt for the merger, however Greenville and Oconee County councils did not approve, and did not accept liability for debt from Palmetto Health.

McMaster also noted in the letter of a pending lawsuit from the Greenville County Legislative Delegation regarding GHS's restructuring, and added that these issues need to be resolved at county level before he can agree to share responsibility for the existing bond debt.

Below is the letter from Governor Henry McMaster:

Senator William Timmons posted his thoughts on McMaster's decision on his Facebook page on December 30:

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