ELIZABETHTOWN, Ky., (Nov. 6, 2017) – Hardin Memorial Health (HMH) and Baptist Health announced today they have now signed a Letter of Intent for Baptist Health to acquire and operate HMH. The Letter of Intent kicks off a formal due diligence process involving both entities, the negotiation of definitive transaction documents, and appropriate regulatory approvals.
The Letter of Intent is a non-binding agreement, which follows a two-year long HMH process of exploring potential affiliations and authorizes both parties to move forward with necessary steps to pursue a proposed acquisition. Terms of the non-binding Letter of Intent are confidential. Following this due diligence and negotiation process, projected to take several months, the terms of the final definitive agreement will be made public.
Hardin County Judge/Executive Harry Berry, Chairman of the HMH Board of Trustees, said “The challenge for independent, county-owned hospitals like HMH, faced with a demanding and uncertain environment of increased costs and declining reimbursements, is to continue to ensure that clinical expertise and capital investment keeps pace with citizen demands for the highest level of local healthcare.
“HMH and Baptist Health have worked together for two decades. This transaction will assure that HMH will emerge stronger operationally and financially as a regional healthcare leader. This will clearly benefit the 400,000 individuals in 10 counties which our health system has served with quality healthcare for more than 60 years,” said Berry.
Allen Rudd, chairman of the Baptist Health Board of Directors, said, “We are genuinely pleased at the prospect of welcoming Hardin Memorial Health to the Baptist Health family. We are committed to expanding HMH services, growing its market share and enhancing its position as our anchor facility for Central Kentucky. The missions of Baptist Health and HMH are closely aligned and we look forward to continuing to provide high-quality healthcare to Central Kentucky residents.”
The next phase of the due diligence and negotiation process, with 18 due diligence teams covering operational, legal and financial areas, is projected to take several months. Prior to completion, the transaction would require appropriate regulatory approval.
Hardin Memorial Health is an integrated system of providers and facilities serving approximately 400,000 residents in 10 Central Kentucky counties (Hardin, LaRue, Meade, Breckinridge, Grayson, Nelson, Hart, Bullitt, Green and Taylor).
The 300-bed hospital in Elizabethtown, Kentucky includes 270 acute care, 15 psychiatric and 15 skilled nursing beds. Additionally, HMH includes 45+ outpatient facilities across the service area including a Cancer Care Center and Outpatient Surgical Center. There are over 400 physicians in over 45 specialties and primary care including Hospitalists available 24/7, Emergency and Urgent Care; Cancer, Cardiac, Rehab and Therapy Services; Medical and Surgical Services; Pulmonary Care, Diagnostic Imaging, Ear, Nose and Throat, Plastic and Reconstructive Surgery, Obstetrics including a Level II Neonatal Intensive Care Unit (NCIU) and Pediatrics. With 2,389 employees and an active volunteer corps of 119, Hardin Memorial Hospital is the third largest employer in Hardin County.
Founded in 1924, Baptist Health has been bringing advanced medical technology, modern facilities, and many of the region’s most prominent physicians and medical professionals to Kentucky communities for nearly a century.
Headquartered in Louisville, the Baptist Health family of hospitals, care centers, physician offices and health facilities has experienced tremendous growth in recent years. Baptist Health Floyd in New Albany, Ind. (formerly known as Floyd Memorial Hospital and Health Services), joined in 2016. In 2012, Baptist added Baptist Health Richmond (formerly Pattie A. Clay Regional Medical Center) and Baptist Health Madisonville (formerly Trover Health System). Baptist’s other hospitals include Baptist Health Paducah, Baptist Health Louisville, Baptist Health La Grange, Baptist Health Lexington and Baptist Health Corbin.
Baptist Health has more than 300 points of care in 39 Kentucky counties, six counties in Illinois and six counties in Southern Indiana. Its physician network includes more than 3,000 employed and affiliated physicians