Louisville-based Baptist Health has agreed to purchase Hardin Memorial Health in a deal worth more than $361 million.
The sale approved on Tuesday by the Baptist Health Board of Directors will build on an existing partnership between the two health care systems. Hardin Memorial Health is owned by Hardin County, but Baptist Health has managed the 300-bed facility and system for the past 20 years.
Under terms of the purchase agreement, Baptist Health will acquire all assets of HMH, and in return, invest $235 million into the hospital over a ten-year period. Those investments would include new facilities, the hiring of additional physicians, and upgrades to the hospital’s information technology.
"As a result of this asset purchase agreement between two institutions that have worked together for decades, HMH will emerge stronger operationally and financially," said Hardin County Judge-Executive Harry Berry, chairman of the HMH Board of Trustees. "This 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 also commit $126 million to Hardin County. The county will receive $60 million at closing, less the amount used to fully fund all liabilities associated with HMH's defined benefit pension plan; 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 a year for 25 years for healthcare services to inmates of the Hardin County jail.
Under the deal, all non-contract employees of HMH would be retained at their current rate of pay and all physicians on staff would be allowed to continue providing services. All physicians will continue to be credentialed and privileged to provide services after the acquisition. President Dennis Johnson and senior leadership will also be retained.
The acquisition must still be approved by Hardin Memorial Health’s Board of Trustees at a May 22 meeting. After the sale is finalized on December 1, the hospital system will be known as Baptist Health Hardin.