Capella Healthcare and Mercy Health Join Forces in Hot Springs
By: KARK 4 News
Updated: September 26, 2012
Capella Healthcare, parent of National Park Medical Center, and Mercy Health, parent of Mercy Hospital and Mercy Clinic in Hot Springs (formerly St. Joseph's Mercy Health System), have signed an Asset Purchase Agreement for the two Hot Springs organizations to merge under Capella's ownership, officials announced today.
The proposed affiliation was initially announced in April 2012, with the signing of an Agreement in Principle between the two organizations. Since that time, Capella and Mercy - together with third-party expertise and local leadership - have undergone a thorough due diligence (or research) process.
The signed definitive agreement marks the end of due diligence and is the next step in the transaction process. The parties have already begun pursuing customary required regulatory approvals. Mercy's relationship to the Catholic Church also requires approval from the Vatican, and that process is underway. This final phase is expected to take 60 to 90 days, subject to regulatory and Vatican approval.
"This is an important step for our organizations in an effort to build an integrated health system that will advance healthcare for this region for years to come," said Michael Wiechart, SVP and Chief Operating Officer of Capella. "We are extremely appreciative of the contributions of local administrative and physician leadership and the patience of the employees, medical staff, volunteers and Board members at both organizations during this transition time."
At the outset of discussions, Capella and Mercy launched a website (click here) and newsletter dedicated to updates about the affiliation process and future planning.
The proposed affiliation was initially announced in April 2012, with the signing of an Agreement in Principle between the two organizations. Since that time, Capella and Mercy - together with third-party expertise and local leadership - have undergone a thorough due diligence (or research) process.
The signed definitive agreement marks the end of due diligence and is the next step in the transaction process. The parties have already begun pursuing customary required regulatory approvals. Mercy's relationship to the Catholic Church also requires approval from the Vatican, and that process is underway. This final phase is expected to take 60 to 90 days, subject to regulatory and Vatican approval.
"This is an important step for our organizations in an effort to build an integrated health system that will advance healthcare for this region for years to come," said Michael Wiechart, SVP and Chief Operating Officer of Capella. "We are extremely appreciative of the contributions of local administrative and physician leadership and the patience of the employees, medical staff, volunteers and Board members at both organizations during this transition time."
At the outset of discussions, Capella and Mercy launched a website (click here) and newsletter dedicated to updates about the affiliation process and future planning.
