Source: The Lane Report
ELIZABETHTOWN, Ky. — The sale of Hardin Memorial Health (HMH) to Baptist Health has been accelerated, and will now be finalized by Sept. 1, 2020. The prior plan called for closing on or before Dec. 1, 2020.
“We are pleased to share the news that HMH can begin reaping the benefits of joining Kentucky’s largest not-for-profit healthcare system sooner than expected,” said Harry L. Berry, Hardin County judge/executive. “September 1 is the start of Baptist Health’s fiscal year so we decided to move forward faster and benefit both organizations.”
“Baptist Health is excited to welcome Hardin Memorial Health to the Baptist Health family and begin fulfilling the promises we made two years ago to strengthen and grow HMH’s strong network of facilities and providers,” said Gerard Colman, Baptist Health CEO. “Baptist Health is a known quantity for the region’s residents – having successfully managed HMH for 20 years. We look forward to many more years of providing excellent healthcare to your communities.”
“Baptist Health remained steadfast in its commitment to Hardin County and HMH through the many legal hurdles after the sale was announced, and they are supporting us now,” Berry said. “We are ready to move forward with plans to transform care for HMH’s more than 400,000 patients from across Central Kentucky.”
Under the terms of the Asset Purchase Agreement (APA), Baptist Health will acquire all assets of HMH and, in return, will commit $235 million over 10 years to HMH in operating and capital investments.
Specific terms call for Baptist Health to 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 a regional healthcare center. After the first five-year period, Baptist Health will commit an additional $85 million in capital investments to HMH.
All told, the agreement spells out $361.4 million in payments and investments.
Baptist Health will offer employment to all HMH non-contracted employees at their existing rates of compensation. Dennis Johnson will be retained as president of the hospital, as will other members of the HMH senior leadership team.
The hospital will have an administrative board, consisting of 11 members, with at least six from Hardin County.
HMH, which will become the ninth hospital in the Baptist Health system, will be renamed Baptist Health Hardin, in keeping with Baptist Health’s tradition of naming its hospitals after the geographic area.