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’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.
Judge-Executive Harry Berry, chairman of the HMH Board of Trustees, “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.”
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.