Scott Memorial Hospital Signs Letter of Intent
May 10, 2012
Agreement marks first transaction for new joint venture between Norton Healthcare and LifePoint Hospitals
Scottsburg, Indiana – The Board of Directors of Scott Memorial Hospital, a 25-bed critical access hospital serving Scott County, Ind., today announced that it has signed a letter of intent to lease the hospital to The Regional Health Network of Kentucky and Southern Indiana, a new joint venture formed by Norton Healthcare and LifePoint Hospitals® to operate hospitals in non-urban communities in the region.
This proposed relationship would be the first transaction for the new Norton and LifePoint company. As part of the proposed lease with Scott Memorial, the new company would operate the hospital, with LifePoint being the managing partner and Norton Healthcare being the clinical partner.
“Scott Memorial is excited about the potential of this affiliation with Norton Healthcare and LifePoint Hospitals, two highly respected hospital systems dedicated to providing quality health care in communities like Scott County,” said Clifford Nay, CEO of Scott Memorial. “Our Board has been exploring potential partnerships for our hospital for several months. With their shared commitment to quality health care, employees, medical staff and communities, Norton Healthcare and LifePoint Hospitals stood out as the ideal partners to provide us the resources and expertise we need to secure our hospital for the future.”
For more than 50 years, Scott Memorial Hospital has been the sole hospital provider in Scott County. A county hospital, the 25-bed critical access hospital is accredited by The Joint Commission and has approximately 200 full-time employees. With a medical staff of approximately 90 providers, Scott Memorial offers a broad and diverse range of health care services and community outreach programs. Hospital services include labor and delivery, cardiac rehabilitation, surgical services, an emergency department, and diagnostic services. The affiliation with the new joint venture company will be subject to the final approval of the Scott County Commissioners and County Council.
“Developing a partnership with LifePoint Hospitals to operate Scott Memorial Hospital, and other hospitals like Scott in the future, directly advances our mission of providing quality health care to all those we serve in a manner that responds to the needs of our communities,” said Steve Williams, President and CEO of Norton Healthcare. “Community hospitals are facing extraordinary challenges in today’s uncertain health care environment. By combining the expertise and services available through Norton Healthcare with LifePoint’s resources and capabilities in operating community hospitals, we’re creating a unique opportunity for community hospitals to prepare themselves for the future and advance health care in their communities.”
Norton Healthcare and LifePoint Hospitals are two highly-respected hospital systems dedicated to providing quality health care in communities like Scott County. Based in Louisville, Kentucky, Norton Healthcare is one of the most comprehensive health care systems in the region, with five hospitals, five outpatient centers, 12 immediate care centers and more than 90 physician practices in Louisville and the surrounding area. Norton Healthcare brings clinical resources and access to specialty and tertiary services, enhancing the continuum of care available to patients.
LifePoint Hospitals, based in Brentwood, Tennessee, is a leading hospital company focused on providing quality health care close to home. The company specializes in operating community hospitals like Scott Memorial and currently has 55 community hospitals in 18 states, including nine hospitals in Kentucky. The Regional Health Network of Kentucky and Southern Indiana combines the resources and expertise of both organizations to ensure the success of community hospitals in the region.
“We are excited about our new joint venture with Norton Healthcare and pleased about the opportunity to join forces to operate Scott Memorial and serve the Scott County community,” said William F. Carpenter III, Chairman and Chief Executive Officer of LifePoint Hospitals. “Together, LifePoint and Norton Healthcare can leverage our strengths and capabilities to ensure that patients in the communities we serve have access to the quality care they need close to home. Our joint venture is an ideal partner for Scott Memorial and other community hospitals in Norton Healthcare’s service area.”
About Scott Memorial Hospital
Scott Memorial is a 25-bed community hospital located in Scottsburg, Indiana that provides short-term inpatient and outpatient health care. Scott Memorial has been providing care to Scott County and its neighboring communities since 1959 and the hospital is the central component in the community’s health care delivery system. The hospital has a medical staff of approximately 90 providers, maintains a critical access designation under the Medicare and Medicaid programs, and is a leading employer in Scott County, with approximately 200 full time employees.
About Norton Healthcare
For more than 125 years, Norton Healthcare’s faith heritage has guided its mission to provide quality health care to all those it serves. Today, Norton Healthcare is the Louisville area’s leading, most comprehensive health care system (45 percent market share) and third largest private employer, providing care at more than 125 locations throughout Greater Louisville and Southern Indiana. The Louisville-based not-for-profit system includes five Louisville hospitals with more than 1,800 licensed beds; five outpatient centers; 12 Norton Immediate Care Centers; 11,300 employees; more than 480 employed medical providers; and about 2,000 total physicians on its medical staff. Norton Healthcare is the 2011 recipient (and the only one in the state of Kentucky) of the prestigious National Quality Forum National Quality Healthcare Award and has consistently been recognized as one of the best places to work in Metro Louisville, the state of Kentucky and nationally. Norton Healthcare and Humana are one of only four national pilot sites, and the only one in Kentucky, to study the Accountable Care Organization (ACO) model through the prestigious Brookings – Dartmouth ACO Pilot Project. More information about Norton Healthcare is available at NortonHealthcare.com.
About LifePoint Hospitals
LifePoint Hospitals® is a leading hospital company focused on providing quality health care services close to home. Through its subsidiaries, LifePoint operates 55 hospital campuses in 18 states. With a mission of “Making Communities Healthier®,” LifePoint is the sole community hospital provider in the majority of the communities it serves. More information about the company, headquartered in Brentwood, Tenn., can be found at www.LifePointHospitals.com. All references to “LifePoint,” “LifePoint Hospitals” or the “Company” used in this release refer to LifePoint Hospitals, Inc. or its affiliates.
Scott Memorial Hospital
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