Koster deal will let sale proceed on two KC-area hospitals

Missouri Attorney General Chris Koster announced an agreement Wednesday that will let Prime Healthcare Services go ahead with its purchase of two area hospitals.

Ascension Health, the nonprofit parent of St. Joseph Medical Center in Kansas City and St. Mary's Medical Center in Blue Springs, agreed to put $20 million in sale proceeds in a restricted account - a move made to assuage concerns that proceeds would be taken out of the KC-area market, according to the Kansas City Business Journal.

The issue at hand is that both St. Joseph and St. Mary's have collected million of dollars in property tax exemptions, as well as local contributions.

Read more from the Kansas City Business Journal.