Reid Health is seeking to buy part of another hospital network, which had filed for bankruptcy in October.
Reid, based in Richmond, Ind., said in an announcement today that it has an agreement to buy “a substantial portion” of Fayette Regional Health System.
Fayette Regional, based in Connersville, Ind., filed for Chapter 11 bankruptcy in October. In a press release at the time, the rural hospital stated it faced mounting debt.
The transaction includes a payment of $12.75 million to the bankruptcy estate of Fayette. Fayette Regional had $48.2 million in revenue in 2016 and $49.4 million in expenses, according to information filed with the IRS.
The proposed transaction requires final U.S District Bankruptcy Court and regulatory approvals and is expected to be finalized in July 2019, according to a statement from Reid.
“Reid Health has proudly served Connersville and the surrounding communities for decades, and we’re looking forward to continuing to provide our friends and neighbors with the exceptional care they deserve,” said Craig Kinyon, president and CEO of Reid Health.
Reid Health officials expect to be at Fayette Regional in the coming weeks to discuss details of the transition with leadership and others at Fayette Regional.
Reid stated more details of the terms of the deal will be disclosed in bankruptcy court filings.
“Reid Health is a known entity in our community, and we look forward to working with them through this transition,” Randy White, president and CEO of Fayette Regional, said in a statement. “I want to thank our talented team of employees, nurses, and physicians for continuing to provide our patients with an exceptional experience during this time.”
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