Portland-based Legacy Health has sold a medical office building on its Legacy Emanuel Medical Center campus for $60.5 million, according to a Dec. 14 report from The Oregonian.
The health system sold the building in an effort to fix its "significant" liquidity problem, according to the report. Legacy will lease back the space from its new owner.
"The important thing to know is the sale generated $60.5 million in cash for Legacy to improve our financial health while also ensuring we maintain control with no disruption for our operations or tenants in the building," the health system said in a statement shared with the newspaper.
Last month, Legacy also closed a deal with Labcorp in which it sold off part of its lab operations. Legacy is also seeking a merger agreement with Portland-based Oregon Health & Science University.
In the fiscal year ending March 31, Legacy's expenses exceeded revenue by $245.7 million. At current spending rates Legacy had enough cash to cover 172 days. That compared to 244 in 2022 and 303 in 2021, the report said.
Its average cash on hand in 2022 declined 17%, to 216. Legacy reported a $1.7 million loss in the first half of its current fiscal year, compared to a $90 million loss in the same period last year.