MissionHealth has been dealt another glancing blow, this time by Nashville's Baptist Hospital.
It took less than a day for Baptist's executive committee to reject MissionHealth's $200 million offer for the hospital last week, but MissionHealth Chief Executive Officer Joshua Nemzoff said he is not stepping out of the ring yet. "We'll see what will happen at Round 2," he said.
MissionHealth, a limited liability company created early last year to provide equity to not-for-profit hospitals, has yet to complete a deal, but Nemzoff said several are in the works. Two offers fizzled last year.
Under the proposed Baptist deal, the 545-bed hospital would stay not-for-profit and be run by a partnership between MissionHealth and an unnamed not-for-profit company, which would manage Baptist and control 75% of the board. For its investment, MissionHealth would receive a percentage of the hospital's cash balance at the end of the year.
MissionHealth's offer "was unsolicited, and it's been reviewed, and we have no interest in pursuing it," said Baptist spokeswoman Jessica Etz. The hospital, which reported a $73 million loss on operations for fiscal 1998, is openly exploring alliances. Its preference would be a partnership with rival 516-bed St. Thomas Hospital, Etz said, but the two failed in an attempt to create a joint operating company last year.
For the eight months ending in February, the hospital earned a $6 million profit on net patient revenues of $168.4 million.