Two Parkersburg, W.Va., institutions—267-bed Camden-Clark Memorial Hospital and 194-bed St. Joseph's Hospital—announced their intention to join West Virginia United Health System, which is a four-hospital network formed by the state Legislature in 1996.
St. Joseph's is owned by Houston-based Signature Hospital Corp., a network of three hospitals that includes two in Texas. West Virginia United Health System will purchase St. Joseph's while Camden-Clark, a stand-alone, not-for-profit institution, "simultaneously affiliates" with the system, according to a news release.
The purchase price for St. Joseph's is currently estimated at $87 million and will be based on the final value of assets at closing, said Signature spokeswoman Lauren Fulton in an e-mail. Including debt financing expenses, she said the transaction will cost about $100 million.
Paperwork is being filed with the Federal Trade Commission regarding the affiliation and purchase as well as a certificate-of-need letter of intent with the West Virginia Health Care Authority, and Camden-Clark spokesman Greg Smith said this due diligence period should be completed by Dec. 1 and that the deal should be closed during the first quarter of 2011.
"All employees will be offered their same wages and benefits," Smith added. "Nobody is going to be let go."