Evansville, Ind.-based Deaconess Health System's potential acquisition of Hopkinsville, Ky.-based Jennie Stuart Health has been delayed at least three months after a group opposing the deal filed a lawsuit to halt the transaction, the Hoptown Chronicle reported Dec. 20.
Six things to know:
1. Deaconess Health and Jennie Stuart signed a non-binding letter of intent in late September.
2. A group called Save Jennie Stuart filed a lawsuit in early December seeking an injunction to halt the transaction.
3. The group and the defendants — Jennie Stuart and its board members — reached an agreement at a Dec. 20 court hearing to extend the due diligence period for the proposed transaction until March 31, 2025, and that the board will not vote on the deal before that date, according to the report. The board was originally slated to vote on the proposed deal in December.
4. The full board may extend the letter of intent with Deaconess during this time period, according to the report. Two more members will be added to the subcommittee working through the details of the proposed deal. The Jennie Stuart Medical Center Board will also "actively pursue securing and preserving the independence of the Jennie Stuart Medical Center Foundation."
5. Save Jennie Stuart alleged in its lawsuit that the fair market value of the hospital is substantial and the hospital's board "breached its fiduciary duties to the hospital by agreeing to essentially transfer the hospital and all of its assets to Deaconess without sufficient consideration coming back to the community."
6. A Jennie Stuart spokesperson told the Hoptown Chronicle in a statement, "The JSH Board remains focused every day on strengthening our health system for the long-term benefit of our entire community. The proposed transaction with Deaconess would empower our caregivers, significantly improve the quality of local health care and solidify Jennie Stuart's role in our community for many years to come."