Mercy health system of Chesterfield, Mo., has signed a letter of intent to acquire Jefferson Regional Medical Center, a 251-bed, stand-alone hospital in Festus, Mo. Jefferson Regional selected Mercy as the preferred bidder among respondents to a request for proposals.
Plans call for Mercy to provide funds to Jefferson Regional to establish a foundation to address health care and social needs. Mercy also plans to invest in capital improvements, including upgrades and expansions to Jefferson Regional facilities. At Catholic Health World's press time, Mercy was not disclosing the acquisition price for Jefferson Regional, its anticipated contribution to the foundation nor the amount it expects to invest in capital improvements.
If acquired by Mercy, Jefferson Regional — which currently is a secular, nonprofit facility — would become a Catholic facility, adhering to the Ethical and Religious Directives for Catholic Health Care Services. The facility would be renamed to reflect that it is part of Mercy. Jefferson Regional would have representation on the board of Mercy's East Missouri region.
Jefferson Regional's Chairman Bill McKenna has said in light of changes happening under health care reform, the facility's leaders believe it is prudent to be part of a large, vibrant, regional system.
Donn Sorensen, regional president of Mercy's East Missouri region, said that Mercy analysis has "identified the southern portion of Mercy's East Missouri region as an important area for growth" — Jefferson Regional is located in that area.
Mercy and Jefferson Regional leaders said the acquisition could be completed by the end of this year or early in 2013.
Separately, Mercy is in discussions to sell Mercy Hospital and Mercy Clinic in Hot Springs, Ark., to Capella Healthcare of Franklin, Tenn. As Catholic Health World went to press, the two were expected to sign their letter of intent imminently.