CHRISTUS Health Sells Share of Baptist St. Anthony’s

CHRISTUS Health has signed an agreement to allow Ardent Health Services to purchase its part ownership of Baptist St. Anthony’s (BSA) in Amarillo, Texas. The deal closes more than a century of service by the Sisters of Charity of the Incarnate Word to the Amarillo community and allows CHRISTUS to move forward in its mission to extend the healing ministry of Jesus Christ and serve other communities with greater need and fewer resources. The agreement represents a significant ownership change for BSA, which will be owned and operated by a new joint venture between Baptist Community Services of Amarillo, Texas, and Ardent. The joint venture will include 445-bed Baptist St. Anthony’s hospital; the Don & Sybil Harrington Cancer Center; a network of primary care, urgent care, surgical and bariatric clinics; a preferred provider network and BSA’s partnership interests in Physicians Surgical Hospitals, ADC endoscopy, and Advanced Imaging Center. Three Sisters of Charity of the Incarnate Word arrived in Amarillo from San Antonio on Feb. 13, 1901 to found St. Anthony’s Sanitarium. Through the Sisters’ service, guidance and selfless efforts, St. Anthony’s underwent multiple expansions and renovations – opening a nursing school, adding more beds and bringing in more physicians to provide care. In 1996, St. Anthony’s Hospital and High Plains Baptist Hospital joined together to form a new health care system, called Baptist St. Anthony’s Health System, which was owned and operated by Baptist Community Services and CHRISTUS Health.. CHRISTUS began the ownership transition in December 2011 when it announced that it would sell its partnership in BSA. Citigroup Global Markets Inc. served as advisor to CHRISTUS, Baptist Community Services and BSA throughout the process, which attracted more than two dozen interested parties, both for-profit and not-for-profit. As the bidders were narrowed, officials of BSA, CHRISTUS and Baptist Community Services conducted reverse due diligence, including visiting the finalists’ operations to assure a good fit regarding culture and philosophy. “While we are saddened to leave the Amarillo community after our sponsoring congregations’ 111-year history here, we know the BSA ministry is in good hands. We are proud of all that BSA has achieved during the BCS and CHRISTUS partnership, and firmly believe that the health system will continue to grow to meet the health care needs of the community,” said Ernie Sadau, president and CEO of CHRISTUS Health. Ardent will own 80 percent of the joint venture, and Baptist Community Services will own 20 percent. Ardent and Baptist Community Services will each appoint half of the joint venture governing board. Ardent subsidiaries own and operate 11 hospitals, a health plan, two multi-specialty physician groups and 11 retail pharmacies. Its affiliate health care operations serve Tulsa, Okla. and surrounding communities and Albuquerque and Roswell, N.M. Key Commitments As part of the new joint venture, Ardent Health Services will, among other commitments: Preserve the BSA mission and its name, as well as the names of its affiliates. Invest $50 million dollars into two specific projects: Construction of a new expanded Emergency Room, one large enough to more than handle current and future emergency volumes. Building a new, state-of-the art cancer clinical facility that will house the patient care services of the Harrington Cancer Center. Invest significant capital – $75 million – into BSA over the next five years for additional services, new equipment and technology and to improve the health system. Guarantee all employees are hired upon the completion of the sale, and that benefits and compensation will remain essentially the same. Continue the chaplaincy program which serves the spiritual needs of BSA patients and families. Keep current insurance and payer contracts, so employees in the region whose insurance currently includes BSA as a preferred provider will see no change. Next Steps Today’s announcement begins a formal transition of ownership, contingent on the review of appropriate government agencies. Pending regulatory approval, the ownership change is expected to be effective close to the end of the year.