Mississippi health system plans to acquire hospital

The Memorial Health System has collaborated with Merit Health Biloxi in several areas, and the two organizations are poised to get a little closer.

Memorial Health System has reached an agreement with Community Health Systems, Inc. to assume full ownership of Merit Health Biloxi.

Memorial Health System says it has reached an agreement with Community Health Systems, Inc. to assume full ownership of Merit Health Biloxi, a 153-bed hospital, along with a medical office building, clinics and two imaging centers. Based in Gulfport, Mississippi, Memorial Health System has had a 50% ownership stake in Merit Health.

CHS has been moving to sell some of its systems in recent years and is now looking to divest another property. Memorial Health System says it hopes to complete the deal in the first quarter of 2025.

Kent Nicaud, president and CEO of Memorial Health System, says the collaboration with Merit Health Biloxi came at a pivotal time during the COVID-19 pandemic to ensure services would continue.

“Now, Memorial is well-positioned to build on this foundation,” Nicaud said in a statement. “By taking full ownership, we can provide a more consistent experience for patients and make it easier for them to access the care they need. With our hospitals and clinics working under the same system, patients will experience smoother transitions between facilities, knowing they’re receiving the same high level of care no matter where they go.”

Nicaud also said the acquisition of Merit Health Biloxi would be good for staff as well as patients.

“We are fully committed to supporting our staff and ensuring they are aligned with the long-term vision of our health system,” Nicaud said in a statement. “Together, we will shape the future of healthcare on the Coast while continuing to prioritize what’s best for our patients.”

Memorial Health Care has seen some improvement in its financial performance recently. Fitch Ratings upgraded its bonds rating from “BBB-” to “BBB” in August and said the health system has a stable outlook. Fitch cited Memorial reporting more than $80 million in operating performance improvements over the past two years, including reduced labor and supply costs and improved volume.

For CHS, the deal offers the opportunity to continue divesting some hospitals.

In August, CHS finalized the sale of Tennova Healthcare-Cleveland, a 351-bed hospital in Cleveland, Tenn. to Hamilton Health Care System, Inc. Hamilton acquired the facility in a $160 million deal.

CHS also recently announced a deal to sell three hospitals in northeastern Pennsylvania to WoodBridge Healthcare, Inc. in a $120 million transaction. In that deal, WoodBridge is purchasing Wilkes-Barre General Hospital in Wilkes-Barre, a 369-bed facility; Regional Hospital of Scranton, a 186-bed facility; and Moses Taylor Hospital in Scranton, with 122 beds.

CHS now operates 69 hospitals in 15 states.

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