Community Hospitals Indianapolis has signed a letter of intent to merge assets with 207-bed Community Hospital of Anderson (Ind.) and Madison County.
With combined assets of some $425 million, the two organizations hope to share management expertise and reduce costs. The deal, which is expected to close June 30, calls for the three-hospital Indianapolis system, which has 822 acute-care beds, to assume the smaller hospital's $35 million in debt.
"The assets are coming together, but we will retain the same board and we will each get a seat on each other's board," said Bill Wissman, Community Hospital of Anderson's chief executive officer.
In addition, the deal will allow the Anderson facility to create an $18 million Community Hospital of Anderson Foundation to fund capital improvements and community health programs in Anderson and Madison County. The $18 million comes from Community Hospital of Anderson's cash surpluses, investments and endowments, Wissman said.
Community Hospital of Anderson reported net income of $2.1 million on net revenues of $56.2 million in 1994, the latest year financial data were available from HCIA, a Baltimore-based healthcare information company.
Community Hospitals Indianapolis CEO Bill Corley said the deal is the system's first hospital affiliation outside the Indianapolis market, tapping 40% of the 130,000 population in Madison County, 35 miles northeast of Indianapolis.
The system has been looking for partners since its joint venture with 836-bed St. Vincent Hospital and Health Care Center broke apart earlier this year.