The South Peninsula Hospital in Homer will purchase the Homer Medical Center for $435,000 and plans to expand it.
Currently the hospital leases use of the Homer Medical Center for an annual lease payment of $117,000.
Hospital CEO Bob Letson told the Kenai Peninsula Borough Assembly on Tuesday that the purchase of the facility where six family practice providers and an OBGYN operate is vital.
Assembly Member Stan Welles was the only no vote, saying that he respectfully did not agree with the move.
He said that the way he sees it, the purchase would result in increased taxes and patient costs due to a monopoly.
Ultimately assembly members approved the allocation of $435,000 from the South Kenai Peninsula Hospital Service Area for the purchase of the building.
An appropriation of $1,635,000 for a 3,700 square foot expansion of the building was also included in that ordinance.
