D.C. Attorney General Brian L. Schwalb has announced a sweeping resolution to the controversial sale of the long-vacant Providence Hospital campus in Ward 5.Schwalb’s office said the resolution would secure millions in public health benefits for District residents while allowing the long-stalled redevelopment to progress.The Office of the Attorney General (OAG) has approved the sale of the 22-acre site — largely dormant for six years — to Vision PH Associates, a joint venture between developers EYA, LLC and the Menkiti Group. The developers plan to transform the campus into hundreds of new housing units, including affordable apartments, to help ease the District’s housing shortage.
However, the deal, initially proposed for just $1, was only approved after OAG intervened and imposed major conditions to protect the public interest. Following a two-year review under the District’s Healthcare Entity Conversion Act (HECA), the OAG determined that the original terms did not reflect the true value of the nonprofit hospital’s assets — assets built up over generations with support from District taxpayers.“Ward 5 residents made clear that this deal must balance the need for additional housing and community development with continued access to health care services. Today’s agreement does exactly that — providing millions of dollars in public health resources and paving the way for significant residential and commercial expansion,” Schwalb stated. Key conditions secured by OAG include:• $5 million in public health funding: The parties must establish and fund a charitable healthcare trust, the DC Healthcare Access Trust, to directly support healthcare services in the District.
• A new urgent care center: Vision PH must include a family urgent care facility on the redeveloped campus, addressing an ongoing need in medically underserved Ward 5.• Repurposing medical equipment: Millions of dollars in existing medical equipment must be transferred to the District or another healthcare nonprofit rather than discarded or lost.Ward 5 Council member Zachary Parker said redeveloping Providence has been a priority since he took office.“I appreciate Attorney General Schwalb’s partnership in these efforts by securing a deal that minimizes risks to the immediate Michigan Park community, maximizes benefits to the District, and creates a pathway for an inclusive development at this Ward 5 hub,” said Parker. Behind the Providence Redevelopment Under the original terms, Providence — a nonprofit Catholic healthcare institution — agreed to sell nearly all the campus to Vision PH for $1. The plan involved demolishing vacant structures and redeveloping the site into housing.
While some facilities on the campus are still operational and will remain open throughout the transition, the community raised alarms about the closure of Providence’s urgent care and imaging centers in 2023 and the lack of plans for replacement services.The District’s State Health Planning and Development Agency (SHPDA) referred the proposal to OAG for review, triggering a detailed examination under HECA. That law requires that charitable health care assets be adequately valued and preserved for public benefit, even when sold to a for-profit entity. Though HECA does not require that health care continues to be provided on the property, it does require that the proceeds and resources from the sale continue to support public healthcare interests.During its review, OAG found that the $1 purchase price did not reflect the actual value of the campus. Independent experts hired by the District estimated that the land — despite the significant demolition and remediation costs — was worth approximately $6 million more than Vision PH initially proposed. As it stood, the deal would have resulted in the loss of charitable assets built with public support.“We rejected the initial $1 sale of the land,” Schwalb wrote on X, formerly known as Twitter, “and now D.C. will get millions in public health resources along with new housing.”
Significantly, the deal will not impact on the ongoing health services currently offered in several buildings on the campus operated by other providers. Those services will remain intact throughout and after the transition.Open facilities will include “a senior nursing home, a clinic for first responders, and two medical office buildings,” according to Schwalb’s post on X announcing the deal.Schwalb’s office stated that its approval under HECA does not mean all other District agencies have approved the redevelopment plans. Final approvals from zoning and other bodies are still required.Community Engagement Key in Reaching AgreementCommunity engagement was a critical part of reaching the agreement. “As the District’s independent Attorney General charged with protecting charitable assets, I am proud of the work we do with the business and nonprofit communities to secure the best possible outcomes for all Washingtonians,” the attorney continued. “I want to thank the dozens of community members who came forward to make their voices heard, as well as the teams at Providence and Vision PH, whose cooperation in our review helped achieve a universally beneficial resolution.”
In addition to public hearings and over 1,500 reviewed documents, the OAG said it received strong community feedback calling for continued healthcare access. Residents and healthcare providers pointed to the lack of medical services in Ward 5, which federal officials designated as a medically underserved area. Officials reported that the revised agreement directly responds to those concerns.“I have heard loud and clear from residents that they want access to health care as part of the development, and I greatly appreciate that this deal includes plans for a new family urgent care center and maintaining healthcare facilities at the site,” he continued. “I look forward to working with community partners and city leaders to ensure the Providence Redevelopment delivers for Ward 5 neighbors.”
Source: Washington Informer
