St. Mary’s Hospital up for sale
Catholic Healthcare West announced today it has entered into exclusive negotiations with Community Health Systems Professional Services Corporation, a leading operator of general acute-care hospitals based in Franklin, Tenn., to discuss a possible future sale of Saint Mary’s Regional Medical Center in Reno. The organizations are now entering into a confidential due-diligence phase. Saint Mary’s sponsoring congregation, the Dominican Sisters of San Rafael, has been actively engaged in these discussions. The Dominican Sisters, along with the CHW Board of Directors, will provide final approval if a sale proceeds. The transaction would be finalized in early 2012.
During this process, Saint Mary’s Regional Medical Center will continue all normal operations. There will be no impact on patient care, employment, contracts, billing, or any other facet of Saint Mary’s daily operations. Saint Mary’s will retain existing employment levels in the near term and Community Health Systems has agreed to engage in good-faith negotiations with unions.
The changing health care environment is placing an even greater emphasis on delivering high-quality care at a lower cost. To ensure CHW and Saint Mary’s are optimally equipped to succeed in a reformed health care environment, we must carefully steward our resources to protect the availability of care both locally and across all of CHW’s service areas. CHW remains committed to ensuring that high-quality care, as well as consumer and physician choice of hospitals, is available in northern Nevada.
For several months, CHW has been working to identify a potential partner to help Saint Mary’s preserve and strengthen health care services in the region. Throughout the process, CHW and the Dominican Sisters’ priority has been to identify a partner that would reflect our commitment to the ongoing operation of Saint Mary’s and the mission of providing a quality hospital choice to consumers and physicians in the Reno community. We believe Community Health Systems can provide the right resources to further strengthen Saint Mary’s and advance the hospital’s commitment to serving this community with high-quality health care.
As part of this future transaction, most existing Saint Mary’s outreach programs and affiliated health centers, including Saint Mary’s Medical Group, will transition to subsidiaries of Community Health Systems. Saint Mary’s Health Plans will remain within the CHW network. The Saint Mary’s Foundation is a separate legal entity from Saint Mary’s Regional Medical Center. While we expect it to continue to operate as a nonprofit community service foundation, any decision about its future direction will be made by its Board of Directors and its executive leadership.
Because terms of the agreement are still being negotiated, the parties are not able to provide any additional details until a definitive agreement is reached.