Baptist Health signs binding purchase agreement for Floyd Memorial
June 29, 2016
With the go-ahead from government officials and both hospital boards, Floyd Memorial Hospital and Health Services has moved one step closer to becoming part of the Baptist Health Family.
(June 28, 2016) NEW ALBANY, IND. – With the go-ahead from government officials and both hospital boards, Floyd Memorial Hospital and Health Services has moved one step closer to becoming part of the Baptist Health Family.
A binding asset purchase agreement was signed today, following its approval by the Floyd County Commissioners, Floyd County Council and Floyd Memorial Board of Trustees. The Baptist Health Board of Directors approved the transaction earlier today in a separate meeting.
Signing of the agreement is the second step toward the hospital being acquired by Louisville, Ky.-based Baptist Health. The final step will be closing, expected to occur on Sept. 30.
After closing, the hospital will be known as Baptist Health Floyd, in keeping with Baptist Health’s tradition of linking the hospital name with its geographic location.
“We continue to be very encouraged by the possibilities this acquisition will provide for our organization and Southern Indiana residents. As we look to the future, we anticipate expanding our service offerings, which will ensure Floyd Memorial remains the premier hospital in Southern Indiana and the primary referral center for all of our surrounding counties,” said Floyd Memorial CEO Dan Eichenberger, MD.
“We are very pleased about Floyd Memorial joining the Baptist Health Family. This represents our first hospital outside Kentucky’s borders, although we’ve served patients from surrounding states for years,” said Baptist Health CEO Steve Hanson. “Southern Indiana residents can expect to receive the same excellent care and service they have come to rely on, now with the added benefit of being under the Baptist Health umbrella.”
The sale price includes capital investments by Baptist Health in Baptist Health Floyd of $140 million over the next seven years to expand services, invest in improved technologies and transition to Epic, one of the highest-rated electronic medical record systems in the nation.
Because the hospital was county-owned, Floyd County will receive about $75 million at closing (after paying transaction costs). In addition, another $61 million will be paid over the next 10 years, some designated for ongoing healthcare-related needs and activities.
Other than the name change, patients should see few differences when the transition occurs.
Baptist Health has made a commitment to hire all non-contracted Floyd Memorial employees, at their existing pay rate, who successfully complete Baptist Health’s required pre-employment screening. This will include a drug test and background check.
Baptist Health, one of three finalists in the acquisition process, was considered a natural fit for Floyd Memorial because it has an established and trusted presence in the Kentuckiana community. Baptist Health and Floyd Memorial already share some common services with their open heart and weight-loss surgery programs.