Under the terms of the deal, Deaconess will invest at least $95 million in Jennie Stuart. The health system will also fully fund Jennie Stuart’s transition to Deaconess’s iteration of the Epic EHR system, which would cost Jennie Stuart between $40 million and $60 million as a standalone entity.
The news comes shortlhy after a settlement agreement that had delayed the vote until late March was modified, the Hoptown Chronicle reported March 3.
In December, Save Jennie Stuart — a group opposing the deal — reached an agreement with the hospital and its board to extend the due diligence period for the proposed transaction until March 31, 2025, and that the board will not vote on the deal before that date. On Feb. 26, a judge signed an order modifying the agreement and dismissing the case with prejudice.
Save Jennie Stuart alleged in its lawsuit that the fair market value of the hospital is substantial and that the hospital’s board “breached its fiduciary duties to the hospital by agreeing to essentially transfer the hospital and all of its assets to Deaconess without sufficient consideration coming back to the community.”
Save Jennie Stuart said in a statement that its efforts led Deaconess to make an offer with “more favorable terms to the community,” according to the report. The group said it still opposes the acquisition, but it hopes “the takeover will result in better medical care for the community and a continuation of the charitable contributions made by Jennie Stuart to the community over the years.”
Jennie Stuart Health signed a non-binding letter in October to join Deaconess. At an Oct. 30 informational meeting about the proposed acquisition, Jennie Stuart Health Medical Staff President Matthew Robinson, MD, said the hospital is seeking to switch its EHR to Epic, which is too expensive to do on its own. He said Deaconess “promised a very expedited deployment that once everything is finalized, we could have Epic up and running within six to nine months.”
The transaction is anticipated to close on or before Aug. 1, pending regulatory and closing conditions.
