Catholic Medical Center (CMC) has signed a non-binding letter of intent (LOI) to explore partnership with HCA Healthcare. The discussions will evaluate a potential agreement where CMC would join HCA Healthcare.
Citing the need to maintain its long-term viability, Catholic Medical Center says it is exploring a partnership with HCA Healthcare.
Based in Manchester, New Hampshire, Catholic Medical Center says it has signed a non-binding letter of intent and will begin negotiations that could lead to CMC joining HCA.
If the deal comes together, the non-profit Catholic Medical Center would become part of HCA, the largest for-profit hospital organization in America. CMC says any deal would be contingent upon the organization maintaining its Catholic identity.
The non-binding LOI is the first step in a well-defined and lengthy process that involves further due diligence, negotiation of final terms, and approvals. In the meantime, the excellent healthcare patients receive will continue.
“We have been engaged in a thorough process to identify a partner who will help us ensure the needs of our community will continue to be met now and, in the future, without compromising our Catholic identity. We have seen this successful model with HCA Florida Mercy Hospital, an HCA Healthcare Catholic hospital in the Archdiocese of Miami and are confident in HCA Healthcare’s commitment to ensure CMC will continue to operate as a Catholic hospital in accordance with the ERDs,” said Timothy Riley, Chair of CMC’s Board of Trustees in a statement.
Catholic Medical Center says the letter of intent begins what is expected to be a long process of negotiations and due diligence before an agreement is finalized.
However, the Catholic Medical Center says it has agreed with HCA to create a non-profit foundation to carry on CMC’s community service and will continue to provide charity care to the uninsured.
CMC says the partnership, if ratified, would enable patients to take advantage of HCA’s capabilities.
Catholic Medical Center is licensed for 330 beds and employs more than 3,000 workers. The medical centre is part of Granite One Health, a non-profit regional health system. The boards of the hospitals that formed Granite One posted a message in May saying that they have agreed to dissolve the system.