2013-07-01 – Merger Planned Between Covenant Health, Cumberland Medical Center
Cumberland Medical Center and Covenant Health have entered into a Letter of Intent effective June 24, 2013.
The Letter of Intent was approved by the CMC Board of Directors culminating months of discussion between the entities regarding a potential merger. The next step in the process will be the execution of a definitive agreement and approval by state and federal authorities, with an anticipated completion of the transaction before the end of the year.
The Letter of Intent is a non-binding agreement where both parties have agreed to specific terms relative to the services provided at Cumberland Medical Center and the benefits that Covenant Health will bring to the hospital and the community.
CMC’s CEO Ed Anderson commented that the Board’s commitment to the legacy of Dr. May Wharton and her dream of providing healthcare in the local community was the driving force in the Board’s decision.
The hospital is committed to maintaining its not-for-profit status, and Covenant Health is philosophically aligned with Cumberland Medical Center which was crucial in the Board’s choice of a partner.
CMC already utilizes Thompson Cancer Survival Center, a member of Covenant Health, as the manager of the CMC Regional Cancer Center. Additionally, CMC and Covenant Health are currently working on the development of an interventional cardiology program.
Cumberland Medical Center is a 189-bed sole community hospital founded in 1950. The hospital’s mission is: To make quality health care available on a regional level to those in need of our service through dedication, professionalism and charitable endeavors while maintaining financial stability.
“Cumberland Medical Center is committed to excellence and dedicated to improving health, wellness and quality of life in the community. That commitment complements Covenant Health’s mission of improving the quality of life through better health,” said Anthony L. Spezia, Covenant Health President and CEO. “We are already partnering with Cumberland Medical Center in a number of ways to provide healthcare services to the people of Crossville and the surrounding area, and we look forward to the next steps in formalizing the relationship between our organizations.”
Covenant Health is a community-owned health system providing comprehensive health services throughout East Tennessee. Headquartered in Knoxville, Covenant Health includes eight hospitals, along with numerous outpatient services and clinics.
The health system also includes specialty providers of behavioral, oncology, and rehabilitation services, along with home care, physician clinics, and community wellness and outreach programs. Covenant Health has more than 10,000 employees and physicians system-wide.