River Oaks Hospital in Flowood, Miss., will acquire Woman's Hospital, also in Flowood, for about $20 million.
The sale's effective date is Aug. 1. River Oaks is a 100-bed for-profit hospital owned by a group of local physician investors. Woman's Hospital is a 111-bed specialty hospital owned by Paracelsus Healthcare, the Pasadena, Calif.-based hospital chain.
Meanwhile, River Oaks also has filed an appeal with the state Supreme Court over a county court decision to disallow certificate-of-need approval for a 10-bed birthing center (June 13, p. 24).
In June, a Hinds County judge reversed a state Health Department CON permit that would have allowed River Oaks to open its birthing center. The judge said the additional beds were not needed. Rondah Marks, River Oaks' marketing director, said the proposed birthing unit would provide 10 labor, delivery, recovery and postpartum rooms.
Obstetric department rooms at Woman's Hospital, which specializes in healthcare for women, are designed for labor, delivery and recovery, she said.