Hardin Memorial Health and Baptist Health to Sign Letter of Intent
Hardin Memorial Health (HMH) announced today that its Board of Trustees has agreed to sign a letter of intent with Baptist Health as their future partner, subject to due diligence, the negotiation of definitive transaction documents, and appropriate regulatory approvals. . .
Baptist Will Commit Significant Capital to HMH, Add Support
for Hardin County
ELIZABETHTOWN, KY, Aug. 15, 2017 – Hardin Memorial Health (HMH) announced today that its Board of Trustees has agreed to sign a letter of intent with Baptist Health as their future partner, subject to due diligence, the negotiation of definitive transaction documents, and appropriate regulatory approvals.
Baptist Health’s Board of Directors has approved signing the letter of intent. Details of the proposed transaction will be released after the letter of intent is signed.
This non-binding agreement, which follows a two-year long HMH process of exploring potential options, authorizes both parties to move forward with necessary steps to pursue a proposed transaction. Under the terms of the proposed transaction, Baptist would acquire all assets of HMH and, in return, would commit significant capital for reinvestment into the healthcare system and make an additional monetary commitment to Hardin County.
Hardin County Judge-Executive Harry Berry, chairman of the HMH Board of Trustees said, "This proposed transaction would be a clear win/win for the residents of Central Kentucky. It is the result of an exhaustive process, which encompassed 3,600 hours and evaluated three dozen health systems, in order to reach the absolute best decision for the future of the healthcare of our residents. In the end, that decision was Baptist Health.
“HMH and Baptist Health have a 20-year history of working together; we know and respect each other and enjoy similar cultures. Baptist is committed to significantly strengthening HMH, upgrading information technology and improving financial health, while retaining the continuity of senior management and personal care that has been our hallmark for more than 60 years.”
“We are so very grateful to the Board of Hardin Memorial Health (HMH) for selecting Baptist Health to be their future partner,” said Steve Oglesby, CFO and interim co-CEO for Baptist Health. “We have a long standing relationship with the hospital through a 20-year management arrangement and are very excited about building on that relationship. HMH is the preeminent provider of healthcare in central Kentucky and will play a critical role on the Baptist Health team as we move forward. Both HMH and Baptist already share a similar culture that is patient, physician and employee focused and believe the combination of the two systems will be a great fit. Both of our futures were bright, but now even brighter together.”
After the signing of the letter of intent, the due diligence and negotiation process is projected to take several months. Prior to completion, the transaction would require the review and approval of state and federal regulators.