Baptist offered $150 million to purchase the hospital in March. Following approval Tuesday from Floyd County Commissioners, Floyd County Council and Floyd Memorial board of trustees, the entities signed a binding asset purchase agreement.
The deal, totaling over $300 million, includes $140 million in capital investments into Floyd Memorial — to be renamed Baptist Health Floyd — over the next seven years. The investment will expand services, improve technologies and transition the facility to an Epic EHR.
Because Floyd Memorial was owned by Floyd County, the county will receive about $75 million up front and another $61 million over the next 10 years for ongoing healthcare-related needs and activities, among other things.
Baptist said patients will see few changes when the transition occurs, save for the name change. In addition, Baptist said it will hire all non-contracted Floyd Memorial employees at their existing pay rates if employees pass required pre-employment screening.
The deal is expected to close on Sept. 30.
More articles on hospital transaction and valuation issues:
Renown Health, Stanford Healthcare ink affiliation agreement
7 RCM transactions so far in 2016
5 Shifts in healthcare discussed at the AHA Partner Summit
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.