Baptist Health Buys Trover Health
Following the nationwide trend of large hospitals taking over smaller ones in light of health care reform demands in a slow economy, Louisville-based Baptist Health added an eighth hospital to its statewide network this week by acquiring Trover Health System in Western Kentucky. Andy Sears, vice president of planning and system development for Baptist Health, told Laura Ungar of The Courier-Journal that Trover contributed its total assets to Baptist Health, which took over its liabilities, making the deal worth about $120 million.
Ungar reports the Trover acquisition is especially understandable in the context of the times. "Experts," writes Ungar, "say one big reason for the surge is that larger, wealthier organizations can buy what they need at higher volumes for cheaper prices. Bigger health care organizations also have greater might when negotiating reimbursement rates with insurers." Sears agreed, saying standalone hospitals "don't have the resources to compete."
The deal makes Baptist Health that state's largest health care provider by total licensed bed capacity and by geographical coverage. Trover is located in Madisonville. It will now be called Baptist Health Madisonville. (Read more)