Missouri hospitals move toward merger

Rolla, Mo.-based Phelps Health and Salem Memorial Hospital District have completed the due diligence process, where leadership teams from both organizations collected and shared regulatory and financial information about SMH, and are working towards a transaction in which the two organizations would combine.

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“Based on the results from the due diligence process, we will continue to work with SMH on the findings and how they impact our next steps,” Phelps Health CEO Jason Shenefield said in a Dec. 16 news release shared with Becker’s. “Representatives from Phelps Health and [Salem Memorial] have collaboratively identified some areas that must be worked through to move forward.” 

Phelps Health has shared definitive agreements with Salem Memorial, which outline the proposed transaction in detail and negotiate the terms and conditions. While the contractual agreement is in the review phase, determining when an affiliation may occur remains up in the air. 

“Currently, a timeline remains unclear because of the current contract negotiation and the follow-up items identified during the due diligence process,” Salem Memorial CEO Brooke Bollman said.

Leadership teams from both organizations are working to reach a mutually beneficial agreement. Keeping accessible healthcare in the community remains a top priority.

“If everything comes together as we intend, this potential affiliation could create a sustainable future for rural healthcare and Dent County,” Mr. Shenefield said.

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