A group opposing Evansville, Ind.-based Deaconess Health System's planned acquisition of Hopkinsville, Ky.-based Jennie Stuart Health has filed a lawsuit seeking an injunction to halt the transaction, the Hoptown Chronicle reported Dec. 9.
Five things to know:
1. Deaconess Health and Jennie Stuart signed a non-binding letter of intent in late September.
2. The lawsuit was filed by a group called Save Jennie Stuart, which formed in early October, according to the report. The group includes several former Jennie Stuart board members, including five former board chairs, a majority of the current Jennie Stuart Foundation Board, Christian County Judge-Executive Jerry Gilliam and two former Hopkinsville mayors.
3. Save Jennie Stuart said in a statement that their lawsuit alleges 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," according to the report.
4. Jennie Stuart's board told the news outlet in a statement that it's "incredibly disappointing that this group has decided to pursue a wasteful and meritless lawsuit, which potentially puts the benefits Jennie Stuart patients would receive at risk, instead of working with us to give our community the health system we all deserve."
5. At an Oct. 30 informational meeting about the proposed acquisition, Jennie Stuart Health Medical Staff President Matthew Robinson, MD, said the hospital is seeking to switch its EHR to Epic, which is too expensive to do on its own. He said Deaconess "promised a very expedited deployment that once everything is finalized, we could have Epic up and running within six to nine months."