Indianas Clarian Health will acquire Cardinal Health System Jan. 1, 2009, according to an agreement signed this week that finalizes a letter of intent announced in September.
The Cardinal nameplate will be left behind as its two hospitals, 326-bed Ball Memorial Hospital in Muncie, Ind., and 15-bed Blackford Community Hospital in Hartford City, Ind., along with all Cardinal assets, are transferred to Clarian. The hospitals themselves will retain their names. The deal extends the growing statewide reach of the six-hospital Clarian system, anchored with its 1,380-bed presence in Indianapolis, which includes Indiana University Hospital, Methodist Hospital and Riley Hospital for Children. Ball Memorial will become Clarians regional hub for delivering care in east central Indiana, according to a news release. Meanwhile, Clarian is negotiating the addition of 280-bed Bloomington (Ind.) Hospital to the system in a deal on track to close in 2010.
The agreement approved by each systems board closely hews to the terms outlined in the letter of intent, calling for Clarian to make capital investments of $100 million over four years and a $25 million donation to the BMH Foundation, and develop a single information-technology system and a new computerized physician order-entry system. -- by Gregg Blesch