ELIZABETHTOWN, Ky. (WDRB) -- The $361 million purchase of Hardin Memorial Health by Baptist Health has cleared a major hurdle, because a physician opposed to the deal has agreed to drop his lawsuit.
Retired physician Dr. Larry Hall has agreed to withdraw his petition for a rehearing of the case in the Kentucky Court of Appeals, and HMH in turn has agreed to drop its motion to dismiss and/or motion to sanction the “frivolous appeal,” HMH said in a news release.
Hardin County Judge/Executive Harry Berry, chairman of the HMH board of trustees, said in the release that he was “pleased” with Hall’s decision.
“We will now move forward as swiftly as possible to complete our sale agreement with Baptist Health and begin to deliver the significant benefits to Central Kentucky residents that we are confident will result from this landmark affiliation," Berry said.
HMH President and CEO Dennis Johnson said the withdrawals of the lawsuits would allow the health system to “soon begin to capitalize on the promise of clinical improvements, physician recruiting, facilities and equipment upgrading and all the other positive benefits that will flow from being part of the Baptist Health system.”
A new date when the deal would close was not immediately disclosed.
Hardin County Fiscal Court approved the sale in May 2018. The Kentucky Appeals Court approved it in October 2018.
However, Hall had said in his suit that Hardin Fiscal Court members violated Kentucky statute that relates to “the sale and disposal of real and personal property belonging to the county.” Hall said he feared the hospital would become a referral into the Baptist Health system in Louisville and that the parties reached a deal “behind the backs of citizens.”
Baptist Health has managed Hardin Memorial since 1997 but, if completed, the deal would mark the first time the county hasn't owned it.
Hardin Memorial has struggled for years financially, according to at least two fiscal court magistrates. According to IRS records, Baptist generated a surplus of $256 million in the fiscal year that ended Aug. 31, 2018, the most recent year for which data were available. The system had revenues that year of $2.1 billion.
As part of the purchase agreement, Baptist Health will spend $235 million over the next 10 years on capital purchases. More than $126 million of that goes to Hardin County: $60 million when the sale is finalized and $66.4 million over the next 25 years. The hospital group had also previously said it will take on $37 million in debt-obligation as part of the agreement and no employees will be affected.
Hardin Memorial serves about 400,000 residents in 10 central Kentucky counties. Baptist Health, based in Louisville, provides care in more than 300 locations and has more than 2,700 beds in nine hospitals.
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