What to know about the Catholic nonprofit buying Singing River Health System in MS
It likely came as a surprise to many people Monday when the Jackson County Supervisors announced their choice of a Catholic nonprofit to buy Singing River Health System.
The front-runner in the search for a buyer was considered to be Ochsner Health, a large nonprofit whose former president and CEO Warner Thomas said in an email to the Sun Herald they expected to submit a bid. Pete November took over as CEO on Nov. 1.
Instead the supervisors chose The Franciscan Missionaries of Our Lady Health System and said in a press release that this health system is committed to providing patients with high-quality and accessible care.
“They also believe in keeping care local, investing in our community and investing in our people,” the press release said.
All the supervisors did Monday was select one company they decided was the “highest and best” bidder, said Ken Taylor, District 3 supervisor and president of the board.
Over the next two months the county and FMOLHS will complete due diligence. If they get through that process, he said, he looks for the sale to close in early September.
How the decision was made
Taylor didn’t disclose the number of bidders or the purchase price, but said if the deal with FMOLHS doesn’t go through, there are other competing bids the supervisors will then consider.
The sale is a joint effort between the county and Singing River Health System, who he said came to the supervisors a year ago looking for millions of dollars in strategic investment. The supervisors weren’t willing to increase taxes by the amount the hospital was looking for, he said, and together they decided to look for a “like minded organization” to buy the health system.
Selling to a religious non-profit is “not an issue as far as we’re concerned,” Taylor said. The hospitals will be run by doctors, he said, not by the church.
As part of the sale, Jackson County will take all of the cash and investments and assume all of the long-term debt, he said. That includes payments on a bond and the retirement plan, which together total about $100 million, he said.
Tiffany Murdock, CEO of Singing River Health System, said Monday in an online memo to staff and retirees: “This announcement and our future with FMOLHS will not impact your pension. The pension will continue to be funded for current employees and our valued retirees as it is today.”
Singing River Hospital by the numbers
Acquiring Singing River Health System would be a major addition to the FMOLHS network of hospitals and clinics based in Baton Rouge
Three hospitals in Pascagoula, Ocean Springs and Gulfport, with a combined 700 beds
The second-largest employer in Jackson County with more than 3,500 employees, physicians, staff and volunteers
An economic impact of more than $270 million per year
One of the largest emergency departments in the state, caring for more than 100,000 patients annually
About the buyer
Franciscan Missionaries of Our Lady Health System reported at the end of the last fiscal year:
1,747 licensed beds among its hospitals
10,827 full time employees
1,915 active medical staff
229,296 emergency visits
44,592 operating procedures
The Catholic health care system provided more than $39 million in un-reimbursed care and community support to the underprivileged, according to the nonprofit’s website.
Other hospitals in the system
FMOLHS has hospitals, clinics and physicians throughout Louisiana and operates St. Dominic’s Hospital in Jackson, which has 571 beds. The website says the hospital cares for the sick and offers education and wellness services to the community.
Their other hospitals in Louisiana include:
Our Lady of the Angels in Bogalusa
Our Lady of the Lake Regional Medical Center in Baton Rouge
Our Lady of the Lake Children’s Hospital in Baton Rouge
Our Lady of the Lake Ascension in Gonzales
Our Lady of Lourdes Regional Medical Center in Lafayette
Our Lady of Lourdes Women’s and Children’s in Lafayette
Our Lady of Lourdes Heart Hospital
St. Francis Medical Center in Monroe
Assumption Community Hospital
