Healthcare Business News

Regional News/Midwest: SunLink sells interest in Missouri Southern Healthcare, and other news

By Modern Healthcare
Posted: November 3, 2012 - 12:01 am ET

DEXTER, Mo.—SunLink Health Systems, Atlanta, sold its interest in Missouri Southern Healthcare to the Southeast Missouri Hospital Association, Cape Girardeau, in a $9.8 million deal. The transaction is expected to yield net proceeds of about $7 million. Robert Thornton, chairman and CEO of SunLink, said in a news release that the system intends to use the funds to “improve our remaining hospitals, repay debt and for general corporate purposes.” The deal represents SunLink's second divestiture this year. The system in March said it planned to sell its Memorial Hospital of Adel (Ga.) to the Tift County (Ga.) Hospital Authority for $8.3 million, a deal that closed in its first fiscal quarter of 2013. SunLink operated the 45-bed hospital in Dexter as part of a lease agreement that was set to expire in 2019. The hospital's landlord notified SunLink that it did not intend to renew the lease and had entered into an agreement with the Southeast Missouri Hospital Association, also known as SoutheastHealth, that would go into effect once SunLink terminated its lease. “We are pleased that we have been able to reach a collaborative agreement for SoutheastHealth to acquire the assets and leasehold interest of Missouri Southern, and for our subsidiary to manage the hospital for SoutheastHealth during a transition period ending June 30, 2013,” Thornton said in the release. The deal is expected to close by the end of the year. The assets included in the purchase agreement include the hospital and clinics, medical equipment and home health services, the release said.

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OMAHA, Neb.—In an estimated $500 million to $550 million deal, Catholic Health Initiatives has become the sole owner of Omaha-based Alegent Creighton Health, an 11-hospital system that it has operated in partnership with Immanuel since 1996. Immanuel, formerly the Lutheran-led Immanuel Health Services, has resigned as a member and co-sponsor of Alegent Creighton, which includes the 113-bed Immanuel Medical Center in Omaha and its affiliates, according to a news release. In June, the Immanuel board announced it would focus on its care and programs for senior citizens, and this deal calls for creating a joint development agreement with CHI “to establish a strategic collaboration to address the housing, healthcare and human services needs of seniors and their families throughout Nebraska and Iowa,” according to the release. Details of this agreement are said to be “in development” and would include skilled- nursing, assisted-living, adult day-care and senior wellness programs. Richard Hachten II, president and CEO of Alegent Creighton Health, now has the additional title of CHI senior vice president of operations. “We welcome the Alegent Creighton Health leadership and staff and the Alegent Creighton Clinic physicians into CHI with the confidence that we're better together in delivering quality care and improving the health of those we serve in new and innovative ways,” Kevin Lofton, CHI president and CEO, said in the release. Alegent acquired 334-bed Creighton University Medical Center in a $63 million deal earlier this year; Alegent subsequently was renamed Alegent Creighton Health.

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