Discussions on a merger between Hot Springs’ two largest hospitals have ended after more than a year, the hospitals’ owners said Thursday.
In April last year, Capella Healthcare, which owns National Park Medical Center, and Mercy Health, which owns Mercy Hospital Hot Springs, said they had agreed in principle for Capella Healthcare to take over Mercy Hospital, formerly known as St. Joseph Mercy Medical Center.
Little Rock Bishop Anthony B. Taylor said the day after the announcement that he had “serious reservations” about the sale of the Catholic hospital, which has 282 beds, and its clinics in Hot Springs. The proposed change in ownership could hurt medical services to the poor in Hot Springs and it also could run afoul of Ethical and Religious Directives for Catholic Health Care Services, Taylor said at the time. National Park has 166 beds.
“The Diocese of Little Rock is presently quite skeptical regarding the acceptability of this proposed sale,” Taylor said last year.
Taylor did not return a call Thursday seeking comment about the end of the proposed sale.
The proposed partnership was subject to approval by the Federal Trade Commission and the Vatican.
The purchase agreement between Franklin, Tenn.-based Capella and St. Louis-based Mercy Health, which had been extended once during the process, expires this week, the two said Thursday.
“Because we anticipate continued challenges - over an indefinite timeline - in obtaining the needed approvals, Capella and Mercy have mutually agreed to not renew our asset purchase agreement and will end our discussions at this time,” Lynn Britton, chief executive officer of Mercy, said in a prepared statement Thursday. “We believe prolonging this uncertain and complicated path is not in the best interest of our local caregivers and the community. However, we remain committed to finding the right solution for enhancing health care in Hot Springs.”
Dan Slipkovich, Capella’s chief executive officer, said in a prepared statement that the decision to end the talks was difficult for Capella and Mercy, “especially given the tremendous amount of work and local support to bring together these two organizations.”
“This has been a complex process - particularly challenging for employees, physicians and volunteers at the local hospitals,” Slipkovich said.
Barb Meyer, spokesman for Mercy Health, declined to elaborate on why the hospitals ended their talks.
“We’re really letting the [news] release stand on its own,” Meyer said.
In October, Taylor, who is leader of the Roman Catholic Church in Arkansas, personally took the fight to stop the purchase to the Vatican.
In addition to concerns about care for the poor, Taylor also expressed concern about part of the proposed sale that would place a five year ban on elective abortions and reproductive sterilization in the merged hospitals. Taylor was concerned about what would happen after five years.
Weeks after Taylor’s visit to Rome, the Vatican responded by asking Mercy Health executives to try to resolve differences with Taylor.
Business, Pages 25 on 06/28/2013