Hardin Memorial Health (HMH) and Baptist Health recently announced 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.