Capella Healthcare has signed an asset purchase agreement for two Hot Springs, Ark., facilities it agreed in April to acquire. Terms of the deal were not disclosed. Capella, which already runs a hospital in the Hot Springs market, will combine its operations with those of Mercy Hospital and Mercy Clinic assuming regulators approve.
“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, Capella’s senior vice president and COO.
SEE ALSO: Our previous stories on this and other Capella initiatives
Executives at Capella Healthcare continue to work on the fine points of their proposed takeover of a Hot Springs, Ark., hospital run by Mercy Health Ministry. Plans for the deal to merge the hospital with Capella's nearby National Park Medical Center were announced — and quickly opposed by some — in April and the two parties say they are running a little behind schedule checking all their boxes. One of those boxes is a trip to Rome.
"As part of the governance process, Mercy Health Ministry must seek approval from the Vatican for certain decisions. The transfer of Mercy Hot Springs to Capella is a decision that requires approval by the Vatican [...] Mercy representatives will be traveling to the Vatican sometime later this summer or fall to obtain the necessary approval."
A director of the Arkansas hospital that is negotiating a sale to Franklin-based Capella Healthcare has resigned from the board of that facility's parent company over the talks, saying he wants the institution to remain faith-based. ArkansasBusiness.com also reports that a former St. Joseph's Mercy CEO isn't exactly endorsing a Capella deal.
SEE ALSO: Capella inks Arkansas deal