Possible Acquisition to Prevent Chapter 11
Fleming County Hospital is currently in the process of negotiating a deal with LifePoint Hospitals to acquire the Kentucky facility.
Since 2008, Fleming County Hospital, which is located in Flemingsburg, Kentucky, has been undergoing financial pressures. In that year, the hospital finished the construction of a $38 million, state of the art building in which the hospital currently serves its patients.
The hospital has 54 beds, one third of which are usually being used. The hospital is reporting an annual loss of $1.2 million.
Due to the continued strain on finances, the hospital’s board feels it cannot endure for much longer before being forced to file for bankruptcy.
“Reserves are down,” said Larry Foxworthy member of Fleming County Hospital’s board. “Unless something is done, the hospital may go bankrupt. We don’t want to see that happen. We need to make sure the hospital stays open and has a presence in Fleming County.”
LifePoint is Fleming County Hospital‘s First Choice
Spanning over 21 states, LifePoint’s network consists of 60 hospitals and health care centers.
Fleming County Hospital executives have clearly stated that they are very much in favor of LifePoint Hospitals being the partner on the other side of the negotiating table.
“The Fleming County Hospital District Board of Directors has selected LifePoint Hospitals as its preferred strategic partner for the acquisition of FCH,” said Tony McGlone, District Board Chairman of Fleming County Hospital.
“As the board explored options to strengthen FCH and advance healthcare in our community in the future, LifePoint emerged as the perfect fit,” added McGlone. “The company has an excellent reputation for providing quality healthcare and a strong track record for successfully operating community hospitals, like ours.”
What is a District Hospital?
“Fleming County Hospital is currently operating as a district hospital,” said David Faulkner Chief Executive Officer of Fleming County Hospital.
The significance of being a district hospital is that the hospital isn’t owned by the county in which it’s located. Fleming County Hospital used to be a county hospital, and recently switched to being operated as a district hospital.
Agreements So Far are Non-Binding
LifePoint Hospitals has filed a letter of intent to acquire the hospital. However, there is no binding agreement as of yet.
“It’s a non-binding agreement at the moment,” Foxworthy said. “Should anything come up that neither party agrees with, that agreement could change.”
“I am unsure what phase of negotiations the hospital is currently in with LifePoint,” said Foxworthy, “But I am aware that several options have been discussed, including an acquisition of the hospital or a partnership There are several options being discussed for the hospital. I don’t know all of the details yet, but this is something that has been in the works for a long time.”