Reports of a potential acquisition or merger of the two hospitals began swirling last week, prompting concern from local officials and residents.
By Julia Hunter/Hoptown Chronicle (reprinted with permission)
The Jennie Stuart Health board of directors has signed a letter of intent to join the Evansville, Indiana-based Deaconess Health, officials from both hospitals announced Monday afternoon.
This begins “a due diligence process that allows both health systems to evaluate each other and finalize the specific details of the agreement that would strengthen and grow medical services for Hopkinsville and the surrounding communities,” according to a news release from Jennie Stuart. “This process is expected to be completed by late 2024 after further board and regulatory approvals.”
The release from Jennie Stuart and a memo to the hospital’s employees were sent following a special meeting of the Jennie Stuart Health Foundation’s board of directors Monday afternoon. During the meeting, which lasted about one hour and 45 minutes, Jennie Stuart CEO Eric Lee presented the plan to join Deaconess. The foundation board members had not been privy to the hospital board’s discussions about aligning with another health facility system.
Reports of a potential acquisition or merger began swirling last week, prompting concern from local officials and residents. At the time, hospital board members acknowledged they were unable to speak to the speculation because they had signed non-disclosure agreements that prevented them from doing so. Following a two-hour private board meeting on Thursday, Lee said he was not able to release any details related to the rumors of a potential change in ownership, which he called “pure speculation.”
Deaconess is also a private nonprofit hospital with with hospitals, clinics and medical offices in Indiana, Kentucky and Illinois. It has 23 hospitals, including Deaconess Midtown Hospital in Evansville, Deaconess Gateway Hospital in Newburgh, Indiana, Deaconess Henderson Hospital and Baptist Health Deaconess Hospital Madisonville. The most recent tax filings available show that Deaconess Hospital Inc. reported total revenue of $1.24 billion in 2022. That year, Jennie Stuart’s tax filings show revenues of $175 million.
In an email provided to Hoptown Chronicle that was sent Monday afternoon to staff of the health system’s Madisonville location, CEO Shawn McCoy emphasized that the potential affilation wouldn’t impact Deaconess’ commitment to Baptist Health Deaconess Hospital Madisonville.
“This exploration with Jennie Stuart Health aligns with our strategic goals of expanding access to high-quality healthcare in the region,” McCoy says in the memo. “It complements our mission and goals with all our existing hospitals, partnerships and providers. We see this as an oportunity to strengthen our overall network of care, which ultimately benefits all our affiliated hospitals and the communities we serve.”
In an email Monday afternoon sent to Jennie Stuart staff and provided to Hoptown Chronicle, CEO Eric Lee echoed McCoy’s sentiments, calling the potential affilation “an opportunity to strengthen our resources and grow our medical services for the patients of Jennie Stuart.”
“Rural hospitals today are facing huge challenges to provide the healthcare needed to best serve our communities,” Lee said in Monday’s news release. “By coming together with Deaconess, we will be able to continue our mission and expand services that we know will positively impact the health and well-being of the communities we serve.”
Jennie Stuart administrators slated a number of meetings to quickly follow Monday’s foundation board meeting. Lee met with physicians and other providers Monday evening. Three “town hall” meetings are planned with employees — at 10 a.m. and 2 p.m. Tuesday and at 7:30 a.m. Wednesday.
This article was originally published by Hoptown Chronicle and was reprinted with permission.
