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Baptist Health agrees to acquire Hardin Memorial Health in $361.4 million deal

NC GAZETTE / WBRT RADIO
STAFF REPORT

Tuesday, May 1, 2018 –– The new ambulatory care center under construction near Corvin’s Carpet on East John Rowan will have a new owner effective later this year.

Baptist Health announced today its plans to purchase Hardin Memorial Health, which includes Hardin Memorial Hospital and more than 50 outpatient facilities including a cancer care center and outpatient surgical center.

The $361.4 million purchase agreement will need the approval of Hardin County Fiscal Court, which is expected at the court’s May 22 meeting.

Baptist Health has managed HMH for the past 20 years. Once it becomes part of Baptist Health, it will be known as Baptist Health Hardin.

As part of the purchase agreement, Baptist Health will commit $235 million over a 10-year period to HMH in operating and capital investments, and $126.4 to Hardin County over a 25-year period.

Judge Executive Harry Berry said the sale agreement “is clearly in the best interests of the 400,000 individuals in 10 counties which our health system has served with quality healthcare for more than 60 years.”

Baptist Health will invest a minimum of $150 million in the first five years to build new facilities, recruit more physicians, upgrade HMH’s information technology and equipment and strengthen HMH’s position and reputation as the preferred regional healthcare center. After the first five-year period, Baptist Health will commit an additional $85 million in capital investments to HMH.

Baptist Health will pay the Hardin Fiscal Court $60 million at closing, less the amount used to fully fund all liabilities associated with HMH’s defined benefit pension plan (estimated at $30-$35 million); pay the county $66.4 million over 25 years; assume all of HMH’s current debt obligations of approximately $37 million; and provide up to $150,000 per year (inflation adjusted) for 25 years for healthcare services to inmates of the Hardin County jail.

Baptist Health will retain Dennis Johnson as president of HMH as well as other members of the HMH senior leadership team

The hospital will be governed by a Hospital Administrative Board, consisting of 11 members, with at least six from Hardin County.

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