Published on December 16, 2024
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Three Things to Know
- Phelps Health and Salem Memorial Hospital (SMH) are reviewing an affiliation agreement to continue providing essential healthcare services to Dent County.
- Both entities signed a nonbinding letter of intent on August 28, 2024, outlining their shared goals, with the formal affiliation expected to start in early 2025.
- Leaders from both organizations emphasize their dedication to improving healthcare access and quality for the local communities through this potential partnership.
Phelps Health and Salem Memorial Hospital (SMH) have completed the due diligence process, where leadership teams from both organizations worked together to collect and share regulatory and financial information about SMH.
“Based on the results from the due diligence process, we will continue to work with SMH on the findings and how they impact our next steps,” Jason Shenefield, Phelps Health CEO, said. “Representatives from Phelps Health and SMH have collaboratively identified some areas that must be worked through to move forward.”
In the meantime, Phelps Health has shared definitive agreements with SMH, which outline the proposed transaction in detail and negotiate the terms and conditions.
While the contractual agreement is in the review phase, determining when an affiliation may occur is difficult. “We know there is a lot of interest in identifying a timeframe for when an affiliation is anticipated,” says Brooke Bollman, SMH CEO. “Currently, a timeline remains unclear because of the current contract negotiation and the follow-up items identified during the due diligence process.”
Leadership teams from both organizations continue to work cooperatively to reach a mutually beneficial agreement. “If everything comes together as we intend, this potential affiliation could create a sustainable future for rural healthcare and Dent County,” said Shenefield.
Keeping accessible healthcare in the community remains a top priority. “We are committed to ensuring that all of our community residents have the necessary resources and support for optimal health,” Bollman said.