The following transactions occurred within the past two weeks, beginning with the most recent.
1. N.C.'s Person Memorial Hospital Officially Part of Duke LifePoint Healthcare
Person Memorial Hospital in Roxboro, N.C., officially became part of Duke LifePoint Healthcare Sept. 30. Under the agreement, Duke LifePoint committed to invest $15 million in capital improvements at PMH over the next 10 years, with a minimum of $6 million spent within the first five years of ownership. Other terms of the sale were not disclosed.
2. Idaho's St. Benedicts to Join St. Luke's Health System
The board of Boise, Idaho-based St. Luke's Health System approved a merger between its hospital in Twin Falls and St. Benedicts Medical Center in Jerome, Idaho. Under the agreement, St. Benedicts will become a subsidiary corporation of St. Luke's Magic Valley Medical Center and will change its name to St. Luke's Jerome.
3. University Health Systems of Eastern Carolina Acquires Pungo District Hospital
Greenville, N.C.-based University Health Systems of Eastern Carolina's acquisition Pungo District Hospital in Belhaven, N.C., went into effect Oct. 1. Under the agreement, UHS of Eastern Carolina will acquire PDH's long-term debt and invest $2.5 million for capital improvements and health information technology upgrades.
4. HMA Closes Purchase of Tennessee's Mercy Health Partners
Naples, Fla.-based Health Management Associates' acquisition of Knoxville, Tenn.-based Mercy Health Partners and its seven hospitals went into effect Oct. 1, and the Mercy system is now known as Tennova Healthcare. The deal was estimated to ring in at approximately $525 million. The seven-hospital Tennova was a subsidiary of Cincinnati-based Catholic Health Partners.
5. Iowa Health System Finalizes Partnership With Illinois' Methodist Health
Des Moines-based Iowa Health System and Peoria, Ill.-based Methodist Health Services finalized their partnership agreement, making Methodist the eighth affiliate of the system. Under the agreement, IHS has committed to invest $175 million into strategic capital initiatives for Methodist. Methodist will retain it board of directors and its local leadership team, and employee status will not change.
6. Texas' Methodist Health Acquires Community Hospital
Dallas-based Methodist Health System purchased the hospital facilities currently owned by Richardson Hospital Authority. Effective Oct. 1, Methodist Richardson Medical Center is officially part of Methodist Health System. The hospital has two campuses and includes 715 physicians in more than 35 specialties.
7. After 2.5 Years, 3 New York Health Systems Close Merger
A 2.5-year merger between New York's St. Peter's Health Care Services, Northeast Health and Seton Health closed Oct. 1. The new system, St. Peter's Health Partners, will operate four N.Y. acute-care hospitals: Albany Memorial and St. Peter's, both in Albany, and St. Mary's Hospital and Samaritan Hospital, both in Troy. The system will also include 19 primary care centers and a network of long-term care and rehabilitation services.
8. Despite Financial Crisis, Arkansas' Fulton County Hospital Quickly Rejects Management Bid
The board of the financially-troubled Fulton County (Ark.) Hospital rejected, without discussion, a management plan proposal by Baxter Regional Medical Center in Mountain Home, Ark. The decision was made Thursday morning in a 5-to-1 vote, and BRMC announced the withdrawal of its proposal Thursday evening. The decision was supposedly rooted in the board's disposition to remain independent, despite the hospital's financial crisis.
9. CHS-Affiliated Eastern New Mexico Medical Center to Buy Roswell Regional
Roswell-based Eastern New Mexico Medical Center, part of Franklin, Tenn.-based Community Health Systems, plans to buy 26-bed Roswell (N.M.) Regional Hospital. Roswell Regional officials said the two hospitals plan to work together to enhance health services, elevate clinical quality and attract new physicians to the Roswell community. Terms of the deal were not disclosed.
10. Florida's Bay Medical Center Signs LOI with LHP Hospital Group, Sacred Heart Health
Bay Medical Center in Panama City, Fla., signed a letter of intent with Plano, Texas-based LHP Hospital Group and Pensacola, Fla.-based Sacred Heart Health System. The LOI was approved by Bay Medical's board this morning, as the hospital faces rising expenses of charity care, $115 million in debt and lower reimbursement rates. Under the proposed deal, LHP and Sacred Heart would lease BMC for 40 years.
11. Connecticut's Yale-New Haven, St. Raphael Hospitals to Merge
Under a proposed merger plan, Connecticut's Yale-New Haven Hospital will buy the assets of Hospital of Saint Raphael, also in New Haven, to create a single hospital with two campuses. Under the agreement, St. Raphael campus will continue to operate under the ethical and religious directives for Catholic healthcare services. A name has not been announced for the combined hospital.
12. New York's Thompson Health, University of Rochester May Affiliate
Canandaigua, N.Y.-based Thompson Health and University of Rochester (N.Y.) Medical Center are discussing a formal affiliation. The community health system and academic medical center would help each other deal with obstacles like reduced reimbursements. The parties are currently in the planning stages and say discussions could take months.
13. Sanford Health Signs Letter of Intent with Minnesota's Clearwater Health
Sanford Health, based in Fargo, N.D., and Sioux Falls, S.D., has signed a letter of intent to partner with Clearwater Health Services, based in Bagley, Minn. The LOI signals the beginning of several months of analyses, due diligence and communication to develop a final agreement. Under the agreement, Sanford would purchase CHS' assets and lease the properties for the next three years. Staff would be employed by Sanford.
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13 Recent Hospital Transaction Developments
1. N.C.'s Person Memorial Hospital Officially Part of Duke LifePoint Healthcare
Person Memorial Hospital in Roxboro, N.C., officially became part of Duke LifePoint Healthcare Sept. 30. Under the agreement, Duke LifePoint committed to invest $15 million in capital improvements at PMH over the next 10 years, with a minimum of $6 million spent within the first five years of ownership. Other terms of the sale were not disclosed.
2. Idaho's St. Benedicts to Join St. Luke's Health System
The board of Boise, Idaho-based St. Luke's Health System approved a merger between its hospital in Twin Falls and St. Benedicts Medical Center in Jerome, Idaho. Under the agreement, St. Benedicts will become a subsidiary corporation of St. Luke's Magic Valley Medical Center and will change its name to St. Luke's Jerome.
3. University Health Systems of Eastern Carolina Acquires Pungo District Hospital
Greenville, N.C.-based University Health Systems of Eastern Carolina's acquisition Pungo District Hospital in Belhaven, N.C., went into effect Oct. 1. Under the agreement, UHS of Eastern Carolina will acquire PDH's long-term debt and invest $2.5 million for capital improvements and health information technology upgrades.
4. HMA Closes Purchase of Tennessee's Mercy Health Partners
Naples, Fla.-based Health Management Associates' acquisition of Knoxville, Tenn.-based Mercy Health Partners and its seven hospitals went into effect Oct. 1, and the Mercy system is now known as Tennova Healthcare. The deal was estimated to ring in at approximately $525 million. The seven-hospital Tennova was a subsidiary of Cincinnati-based Catholic Health Partners.
5. Iowa Health System Finalizes Partnership With Illinois' Methodist Health
Des Moines-based Iowa Health System and Peoria, Ill.-based Methodist Health Services finalized their partnership agreement, making Methodist the eighth affiliate of the system. Under the agreement, IHS has committed to invest $175 million into strategic capital initiatives for Methodist. Methodist will retain it board of directors and its local leadership team, and employee status will not change.
6. Texas' Methodist Health Acquires Community Hospital
Dallas-based Methodist Health System purchased the hospital facilities currently owned by Richardson Hospital Authority. Effective Oct. 1, Methodist Richardson Medical Center is officially part of Methodist Health System. The hospital has two campuses and includes 715 physicians in more than 35 specialties.
7. After 2.5 Years, 3 New York Health Systems Close Merger
A 2.5-year merger between New York's St. Peter's Health Care Services, Northeast Health and Seton Health closed Oct. 1. The new system, St. Peter's Health Partners, will operate four N.Y. acute-care hospitals: Albany Memorial and St. Peter's, both in Albany, and St. Mary's Hospital and Samaritan Hospital, both in Troy. The system will also include 19 primary care centers and a network of long-term care and rehabilitation services.
8. Despite Financial Crisis, Arkansas' Fulton County Hospital Quickly Rejects Management Bid
The board of the financially-troubled Fulton County (Ark.) Hospital rejected, without discussion, a management plan proposal by Baxter Regional Medical Center in Mountain Home, Ark. The decision was made Thursday morning in a 5-to-1 vote, and BRMC announced the withdrawal of its proposal Thursday evening. The decision was supposedly rooted in the board's disposition to remain independent, despite the hospital's financial crisis.
9. CHS-Affiliated Eastern New Mexico Medical Center to Buy Roswell Regional
Roswell-based Eastern New Mexico Medical Center, part of Franklin, Tenn.-based Community Health Systems, plans to buy 26-bed Roswell (N.M.) Regional Hospital. Roswell Regional officials said the two hospitals plan to work together to enhance health services, elevate clinical quality and attract new physicians to the Roswell community. Terms of the deal were not disclosed.
10. Florida's Bay Medical Center Signs LOI with LHP Hospital Group, Sacred Heart Health
Bay Medical Center in Panama City, Fla., signed a letter of intent with Plano, Texas-based LHP Hospital Group and Pensacola, Fla.-based Sacred Heart Health System. The LOI was approved by Bay Medical's board this morning, as the hospital faces rising expenses of charity care, $115 million in debt and lower reimbursement rates. Under the proposed deal, LHP and Sacred Heart would lease BMC for 40 years.
11. Connecticut's Yale-New Haven, St. Raphael Hospitals to Merge
Under a proposed merger plan, Connecticut's Yale-New Haven Hospital will buy the assets of Hospital of Saint Raphael, also in New Haven, to create a single hospital with two campuses. Under the agreement, St. Raphael campus will continue to operate under the ethical and religious directives for Catholic healthcare services. A name has not been announced for the combined hospital.
12. New York's Thompson Health, University of Rochester May Affiliate
Canandaigua, N.Y.-based Thompson Health and University of Rochester (N.Y.) Medical Center are discussing a formal affiliation. The community health system and academic medical center would help each other deal with obstacles like reduced reimbursements. The parties are currently in the planning stages and say discussions could take months.
13. Sanford Health Signs Letter of Intent with Minnesota's Clearwater Health
Sanford Health, based in Fargo, N.D., and Sioux Falls, S.D., has signed a letter of intent to partner with Clearwater Health Services, based in Bagley, Minn. The LOI signals the beginning of several months of analyses, due diligence and communication to develop a final agreement. Under the agreement, Sanford would purchase CHS' assets and lease the properties for the next three years. Staff would be employed by Sanford.
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