Chesterfield-based Mercy Health has signed a “nonbinding letter of intent” to transfer ownership of its hospital and physician clinic in Hot Springs, Ark., to nonprofit Catholic Health Initiatives and its affiliate in Little Rock, Ark.
In a joint press release, the organizations indicated that they plan to negotiate the terms of an agreement with the goal of completing the transaction by Dec. 31.
Mercy Hospital Hot Springs is a 282-bed acute care hospital. Its affiliated clinic has 80 physicians.
Catholic Health Initiatives, a national nonprofit health system headquartered in Englewood, Colo., has 87 hospitals in 18 states. CHI is the third-largest faith-based health system. Its affiliate, St. Vincent Health System, operates St. Vincent Infirmary, a 615-bed hospital in Little Rock.
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“Mercy’s decision to enter into a letter of intent with Catholic Health Initiatives was approved by the Mercy Board of Directors on Oct. 11 following a comprehensive review and discernment of various paths forward in Hot Springs,” Mercy President and CEO Lynn Britton said in a written statement.
“Ultimately, the board determined that the transfer of Mercy Hot Springs to CHI has the best opportunity to ensure a strong, sustainable future for Catholic health care in Hot Springs, enhance health services across the region, and provide opportunities for our co-workers and physicians,” Britton said.
Earlier this year, the Federal Trade Commission staff indicated that it would oppose Mercy’s plan to sell its Hot Springs hospital to for-profit Capella Healthcare because of antitrust concerns. At that point, Mercy abandoned those plans.
The transfer will require approvals from the boards of Mercy, St. Vincent Health System and CHI as well as antitrust approval by federal and state authorities and the blessing of Catholic Church officials.
According to a joint press release by the organizations, St. Vincent has committed to preserve existing physician relationships in the Hot Springs community and also intends to offer employment to current Mercy Hospital Hot Springs employees in good standing as of the hospital closing date.
Date: October 14, 2013