Greenville, S.C.-based Prisma Health plans to enter a new state by acquiring Blount Memorial Hospital, a 304-bed community hospital in Maryville, Tenn.
The board of Blount Memorial Hospital on July 18 voted to join Prisma, an 18-hospital system. Both parties have signed a non-binding letter of intent and enter a period of exclusive negotiations, due diligence and integration planning.
After a competitive evaluation process involving several health systems, Blount Memorial's board, the Blount County Commission and hospital leaders chose to join Prisma "because of our outstanding results in quality, safety, patient experience, community health status, operating performance and market-leading growth," Prisma President and CEO Mark O'Halla said in a statement shared with Becker's.
Under the proposed deal, Prisma would commit to investing $364 million into Blount Memorial
Mr. O'Halla described the deal as an "exciting new chapter for Prisma" as healthcare shifts to a multi-region model" and the number of systems operating in multiple states rapidly increases.
"Expanding to desirable nearby markets with respected regional hospitals like Blount Memorial strengthens our scale, capabilities, relevance, resources, and attractiveness to top talent and industry partners — all attributes of leading health care organizations," Mr. O'Halla said.
July 18 kicks off a four-month exclusive negotiation, due diligence and integration planning period. During this time, both parties will learn more about each other and begin planning for Blount Memorial to officially join Prisma in late 2024.
The transaction is subject to regulatory review and closing conditions.