SSM Health exploring sales of three Missouri hospitals
SSM Health is in the early stages of selling three of its hospitals in mid- and northwest Missouri.
The Catholic-sponsored, not-for-profit health system announced Thursday it has signed a letter of intent with University of Missouri Health Care to buy St. Mary's Hospital–Jefferson City and St. Mary's Hospital–Audrain in Mexico, Mo., as well as their associated outpatient clinics, home care, hospice and medical groups throughout the region.
SSM also signed a letter of intent with St. Joseph, Mo.-based Mosaic Life Care to buy SSM Health St. Francis Hospital–Maryville and its affiliated outpatient, home care, hospice and medical group locations.
SSM's spokesman declined to share the terms of the agreements, including prices. The St. Louis-based health system said it expects due diligence to take several months. If the sales are completed, SSM will still own eight hospitals in Missouri, all in the St. Louis area.
The health system's board of directors last year began exploring options for ensuring the three hospitals' long-term sustainability, SSM wrote in a news release. The St. Louis-based system said it is committed to ensuring exceptional, accessible and affordable care in its communities.
SSM CEO Laura Kaiser wrote in a statement that the healthcare industry has shifted dramatically in recent years.
"In order to provide safe, high-quality health care services that are convenient and affordable, health systems must integrate all points of service across the entire continuum of care," she said. "Given the close proximity of MU Health Care and Mosaic Life Care's existing services, we feel this transition of ownership will best serve the people of Jefferson City, Mexico, Maryville and surrounding communities."
Mosaic Life Care, a member of the Mayo Clinic Care Network, has three hospitals and more than 60 outpatient clinics, urgent care and physician offices throughout Northwest Missouri. Its CEO, Dr. Mark Laney, wrote in a statement that his organization is excited to partner with St. Francis Hospital to ensure local residents can continue to receive great care.
MU Health Care, one of the state's two safety net health systems, has five hospitals in Columbia, Mo., and more than 50 outpatient clinics. CEO Jonathan Curtright said in a statement the health system will offer the Jefferson City and Mexico communities integrated healthcare services and the latest treatments and research. The hospitals will also create new training opportunities for its physicians, nurses and other health professionals.
SSM's operating income dropped to $5.7 million in 2017 on about $6.5 billion in revenue, compared with $10 million on $6.1 billion in revenue in 2016. The health system said its operating income would have increased if not for expenses related to layoffs in 2017 and a fee related to the early termination of contracted services.
SSM in January completed its acquisition of Fond du Lac, Wis.-based Agnesian HealthCare and Monroe, Wis.-based Monroe Clinic, adding four hospitals, eight post-acute facilities and dozens of outpatient clinics to its ranks. The health system currently owns 24 acute-care hospitals.
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