Baptist Health System finishes reorganization

The transformation of Birmingham-based Baptist Health System (BHS) is now complete as the sale of DeKalb and Cherokee Baptist Medical centers to Community Health Systems has been finalized.
   
“[W]e have now completed the work of transforming Baptist Health System from an integrated healthcare delivery system into a hospital system focused on meeting the healthcare needs of those we serve in the greater Birmingham community, and in the many communities of Shelby, Talladega, and Walker Counties,” said Wayne Pate, chairman of the BHS board of trustees, in a BHS press release. “I believe our new structure and direction will better focus us as we move forward in meeting both our mission and vision.”
   
The system’s trustees began looking for ways to help the financially troubled institution in the summer of 2003. At that time, the trustees considered selling the system to Triad Hospitals Inc. but decided on a process of restructuring that included the system and member hospitals.
   
During the almost three years since, BHS has sold four hospitals and its part ownership in a fifth, as well as nursing home, senior housing and sports facilities. It also entered into a partnership with Triad in 2005 to build a new hospital for Montclair Baptist Medical Center in Birmingham, although the location is still yet to be determined.
   
Along with DeKalb Baptist Medical Center in Fort Payne and Cherokee Baptist Medical Center in Centre, BHS sold Lawrence Baptist Medical Center in Moulton, Coosa Valley Baptist Medical Center in Sylacauga and its 50 percent interest in the Cullman Regional Medical Center. With the downsizing, BHS is left with part ownership in Montclair and full ownership of four hospitals — Walker Baptist Medical Center in Jasper, Princeton Baptist Medical Center in Birmingham, Shelby Baptist Medical Center in Alabaster and Citizens Baptist Medical Center in Talladega. BHS also cut its employee staff almost in half. It had 9,500 employees in 2003 and now has 5,300.
   
According to Pate, this restructuring has strengthened the mission of BHS and has allowed the system to focus on its remaining hospitals, including plans to invest more than $115 million in capital projects at those facilities. Pate credited Beth O’Brien, the system’s retiring CEO, with providing the leadership and vision necessary to carry out the restructuring. He noted  the search for O’Brien’s successor is ongoing, as trustees and others are evaluating résumés. (TAB)