Astria Health plans to sell former Yakima hospital to investment company for $20 million

Astria Regional

YAKIMA, Wash. — Federal bankruptcy court documents show Astria Health plans to sell its former Yakima hospital and associated medical plaza for $20 million to a medical office building investment company.

Debtors filed a motion Wednesday asking a judge to approve a private sale for the former Astria Regional Medical Center building, Astria Medical Office Plaza, associated parking lots and “all non-attached furniture, fixtures and equipment, including ambulatory surgery center equipment.”

“We’re very excited and pleased with the outcome of the sale of the assets and hope they’ll be put to good use for the community,” said John Gallagher, President and CEO of Astria Health.

Astria Health filed for bankruptcy last year; in January, officials decided to close Astria Regional Medical Center for good, saying it no longer had the funds to keep it open. After months of sitting empty, Gallagher said Astria Health has decided to accept the highest of multiple offers to purchase the former hospital.

Court documents name the potential buyer as Yakima MOBIC LLC, a medical office building investment company founded in July by a group of real estate investors.

Lawyer Michael Thorner — who represents Yakima MOBIC LLC— told KAPP-KVEW the only remaining tenant at the properties, Astria Ambulatory Surgical Center, will have the option to enter into a leasing agreement with the company.

Thorner is an attorney at the law firm Thorner Kennedy Gano & Murphy P.S., which represents several clients in the local medical field, including Orthopedics Northwest, Yakima Urology Associates, Yakima Heart Center, Yakima Valley Radiology and Comprehensive Healthcare.

When asked about the identities of the investors or prospective tenants for the properties, Thorner declined to answer, citing attorney-client privilege.

“What I will say is that I believe this will be a positive thing for the community,” Thorner said.

Debtors filed a second motion Wednesday asking the judge to move up the timeline for a hearing to consider the motion to sell. The judge approved the motion and a hearing to consider the sale is scheduled for Oct. 21.