2013-01-03 Ardent Health Joint Venture Finalizes Purchase of BSA Health System in Texas
Baptist Community Services (BCS) of Amarillo, Texas, and Ardent Health Services of Nashville, Tenn., have successfully completed the purchase of BSA Health System.
The new joint venture of BCS and Ardent now owns the 445-bed BSA Hospital, the Don & Sybil Harrington Cancer Center, a network of primary care, urgent care, surgical and bariatric clinics and a preferred provider network, as well as majority interests in Physicians Surgical Hospitals, ADC Endoscopy and Advanced Imaging Centers.
“This is absolutely the right ownership team to build on the excellence of BSA and position it for the future,” said Steve Dalrymple, president and CEO of Baptist Community Services. “With millions of dollars in new investment, synergies from Ardent’s hospital systems nearby and our current management team, physicians and employees, we will better serve our patients and communities.”
Ardent subsidiaries own and operate hospitals, health plans and multi-specialty physician groups. Its healthcare operations serve Tulsa, Okla. And surrounding communities and Albuquerque and Roswell, N.M.
“During this due diligence process, we learned a great deal more about BSA and its physicians, nurses and employees,” said David T. Vandewater, president and CEO of Ardent Health Services. “We are even more impressed about the quality of care, the customer service and the incredible culture that exists today throughout BSA. We are honored to be a part of the Amarillo community and this health system.”
As part of the new joint venture, Ardent Health Services will:
• Preserve the BSA mission, name and management team.
• Invest $50 million dollars into two specific projects: Construction of a new expanded Emergency Room, and building a new, state-of-the-art cancer center that will replace the Harrington Cancer Center.
• Invest an additional $75 million into BSA over the next five years for additional services, new equipment and technology. • Guarantee all employees are hired and that benefits and compensation will remain essentially the same. • Endorse and support the current charity care policies of BSA and the Harrington Cancer Center. • Continue the chaplaincy program which serves the spiritual needs of BSA patients and families. • Retain current insurance and payer contracts, so employees in the region whose insurance currently includes BSA as a preferred provider will see no change.
A portion of the proceeds of the sale will go to create a $40 million Harrington Cancer Foundation that will perpetuate the ability for the Harrington Cancer Center to deliver state-of-the-art cancer care, to provide a broad spectrum of support services, and to continue to take care of patients regardless of their ability to pay.
Ardent subsidiaries will own 80 percent of the joint venture, and BCS will own 20 percent. Ardent and BCS will each appoint half of the joint venture governing board, which will ensure there will be substantial local governance and representation.
The price and the financial terms of the agreement are not being disclosed.