Southeast Georgia Health System (SGHS)

Effective may 1, 2015, the authority undertook a corporate restructuring and executed a lease and transfer agreement with Southeast Georgia Health System, Inc. (the System), a Georgia not-for-profit corporation, (formerly kings bay community hospital, Inc. 58-1911751), which assumed substantially all of the operations, assets, and liabilities of the authority and agreed to operate the facilities thereof as a community healthcare provider and to perform and abide by all covenants, agreements, and restrictions for an initial period of forty years. Under the agreement, the System makes nominal lease payments to the authority plus amounts sufficient to make debt service payments on authority conduit debt obligations as they come due and assumes all operational, financial, indigent care, and community responsibilities. In connection with the restructuring, the authority and the System entered into an employee lease agreement whereby the authority leased all of its employees to the System from january 1, 2016 through december 31, 2016, at cost. All leased authority employees were converted to System employment effective january 1, 2017.