Louisville, Ky.-based Baptist Health has offered to purchase Floyd Memorial Hospital in New Albany, Ind., for $150 million.
With Baptist Health's bid placed, the two organizations entered into a nonbinding agreement that allows them to move forward with the transaction. Following a period of due diligence and negotiation, the organizations will work to finalize a binding asset purchase agreement, which they expect to sign by July 1.
Under the proposed deal, $75 million will be paid to Floyd County at closing. Another $75 million will be paid to the county over the next 10 years.
Baptist Health has also pledged to make a $125 million capital investment in Floyd Memorial over the next five years to expand services and transition to Epic.
Commenting on the proposed transaction, Floyd Memorial President and CEO Dan Eichenberger, MD, said, "We are encouraged by the possibilities this acquisition will provide for the Southern Indiana residents we serve. As we look to the future, we anticipate expanding our service offerings, which will ensure Floyd Memorial remains the premier hospital in Southern Indiana and the primary referral center for all of our surrounding counties."
Baptist Health and Floyd Memorial Hospital anticipate the transaction will be completed by Oct. 1.
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