A tornado struck Americus in southwest Georgia on Mar. 7, 2007, killing two people, snapping in half a Georgia Public Television antenna tower and leveling cars and buildings.

Also among the wreckage was Sumter Regional Hospital, whose primary building was destroyed. Since then, the hospital has been operating out of modular buildings, offering urgent care and basic outpatient services.

The Americus and Sumter County Hospital Authority has also made plans to rebuild the hospital. That included hiring a Chicago investment bank to find a financial partner to either acquire the hospital or provide some other source of financing.

In October the Americus hospital authority reached a series of agreements, with the operator of Albany’s largest hospital, Phoebe Putney Health System Inc., to rebuild the hospital. Albany is located about 35 miles south of Americus.

Among the various deals reached, Phoebe Putney signed a 40-year lease and transfer agreement, under which it will manage Sumter Regional Hospital. Phoebe Putney also agreed to spend at least $25 million of its own money to rebuild the hospital.

Smith Moore Leatherwood partners Barry Herrin and Toby Watt in Atlanta are co-lead counsel to Sumter Regional Hospital and the hospital authority. Robert Baudino and Ken Hodges of the Baudino Law Group are advising Phoebe Putney; Baudino is based in Des Moines, Iowa, and Hodges is based in Atlanta. Hodges, by the way, is also running for the office of attorney general of Georgia. He is a former Dougherty County district attorney.

Also involved with the transaction are Phoebe Putney general counsel Tommy Chambless and Judge Michael Fennessy, counsel for the Americus and Sumter County Hospital Authority.

The total cost of rebuilding Sumter Regional Hospital has been estimated at about $125 million, Watt said. Phoebe Putney’s funds will be combined with insurance proceeds and future reimbursements from the Federal Emergency Management Agency.

The parties expect the deal to close on July 1, pending approval from the Georgia Department of Law, pursuant to the Georgia Hospital Acquisition Act. Russ Willard, a spokesman for the department, said the department has not hired outside private attorneys to review the agreement. Staff attorney Shereen Walls is handling the review for the attorney general's office.

One reason the Americus hospital authority selected Phoebe Putney’s offer, which was one among several the authority received, was because of the Albany hospital’s financial strength, Watt said. Because FEMA won’t reimburse Phoebe Putney and Sumter Regional Hospital for rebuilding costs until after the money has been spent, the selected financial partner needed to have the financial capacity to withstand an extended period of time when the hospital would be waiting for FEMA reimbursement.