BHS sells interest in Cullman hospital, SportsFirst facilities

Two more pieces of Baptist Health System’s (BHS) restructuring puzzle have fallen into place.
   
BHS officials announced Aug. 8 an agreement in principle for the Healthcare Authority of Cullman County (HACC) to acquire Baptist Health’s 50 percent interest in the Cullman Regional Medical Center (CRMC). The two formerly held joint ownership of the facility. The agreement should be finalized within the next two months.
   
BHS also announced Aug. 10 that it has signed an agreement for the Birmingham YMCA to purchase SportsFirst from BHS. The transaction will be finalized in the coming months.
   
The Cullman announcement comes 16 months after talks between the two entities began in 2004. 
   
“For the past 12 years, BHS has been steadfastly committed to ensuring that the people of Cullman County receive high-quality, accessible health care,” said Wayne Pate, chairman of the BHS board of trustees and a member of the board of trustees for CRMC. “We are confident that this transaction will mean continued high-quality care for the Cullman area.”
   
“The Healthcare Authority is excited to have come to such a positive conclusion in our negotiations with Baptist (Health),” said Steve Glasscock, chairman of the HACC. “We applaud BHS for their contributions to CRMC, and we have appreciated their partnership.”
   
The SportsFirst sale will include four  facilities: Greystone, Mountain Brook, Trussville and Vestavia, as well as the Mercedes management contract. SportsFirst facilities at Montclair Baptist, Citizens Baptist and DeKalb Baptist medical centers, as well as the facility at CRMC, are not included in the sale and will remain hospital-operated.
   
These latest decisions are part of the restructuring process that began in 2003, when BHS officials chose to rework the existing system. Cullman is the third hospital to be negotiated out of the system. Lawrence Baptist Medical Center in Moulton and Coosa Valley Baptist Medical Center in Sylacauga were the first to be sold. 
   
BHS determined July 29 that Citizens Baptist in Talladega would remain in the system, ending talks of a possible reacquisition by the Citizens Hospital Association. BHS also began a joint partnership with Triad Hospitals Inc., in April to open a replacement facility for Birmingham’s Montclair Baptist. 
   
The details are still being finalized, according to Ross Mitchell, vice president of marketing, planning and government relations for BHS. 
   
A site for the replacement hospital has not yet been chosen, although the HealthSouth Corp. facility on U.S. Highway 280 was initially mentioned and remains a possibility, he said.
   
Mitchell noted that BHS is still seeking a direction for DeKalb Baptist in Fort Payne and Cherokee Baptist Medical Center in Centre. (BHS, TAB)