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Metro Health sale to CHS falls through: 5 things to know

Wyoming, Mich.-based Metro Health Hospital has announced it will not close on the planned affiliation with Franklin, Tenn.-based Community Health Systems, according to an MLive report.

Here are five things to know about the cancelled deal.

1. Under the proposed deal, CHS would have purchased an 80 percent equity interest in the hospital. The deal had been in the works since 2013.

2. When plans for the affiliation were announced, Metro Health said CHS planned to invest $100 million to $125 million in facilities, services, medical technology and physician recruitment in the first five years.

3. Metro Health provided little explanation as to why the deal fell through. Regarding the transaction, Doyle Hayes, chairman of Metro Health's board of directors, said, "At each step in the process, both organizations committed to finding the right fit for patients, employees, physicians and the local community. While each organization worked hard to make the transactions possible, we have not been able to agree on some important details."

4. CHS also hasn't released details as to why the deal was called off. CHS did mention that the planned venture with the hospital was terminated in its earnings report for the second quarter of fiscal year 2015.

5. With the deal called off, Metro Health intends to continue with its mission. "Metro Health remains committed to serving patients in West Michigan with the high quality care they expect and deserve," said Mr. Hayes.

More articles on healthcare industry transactions:

26 hospital transactions and partnerships in July
LifePoint seeks to expand footprint into South Carolina
Capella to be sold for $900M: 5 things to know about the deal

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