New website to explain possible sale of Mercy Hospital Hot Springs

Published: May 10, 2012

Information on the proposed sale of Mercy Hospital Hot Springs to Capella Healthcare is now available through a new website.

The website, which launched May 9, is dedicated to informing hospital employees, physicians, volunteers and the community about the proposed affiliation between Mercy Hospital and National Park Medical Center. Visitors can learn more and ask questions about the two organizations at http://www.AdvancingHotSpringsHealth.com. The website is sponsored by Capella Healthcare, parent of National Park Medical Center, and Mercy Health, sponsors of Mercy Hospital Hot Springs.

"When we announced our discussions to affiliate two weeks ago, it naturally raised a lot of questions from those who care about health care in the Hot Springs community," said Lynn Britton, Mercy president and CEO. "These discussions are truly critical to advancing health care in Hot Springs for years to come, but any change like this is complicated and understandably met with questions and concerns. We are absolutely committed to being as transparent as possible through this next phase of discussions, and this website is just one facet of that promise."

The website contains general information about each organization and the local hospitals, reasons for pursuing the sale and frequently asked questions. One feature on the home page is called "Rumor of the Week." Visitors can sign up to receive weekly updates or to submit questions. It will be updated regularly over the next few weeks.

On April 20, Mercy and Capella signed an Agreement in Principle that "contemplates transferring ownership of Mercy in Hot Springs to Capella and allows the two organizations to engage in exclusive negotiations toward a definitive agreement."

The hospitals said there are five reasons for Mercy Health to sell its Hot Springs hospital:

"Demand for greater scale and sound financial footing as costs of care rise and reform takes hold"

"Drastic changes in how hospitals are paid for the care they provide"

"Need for hospitals, physicians and other providers to work more effectively in improving quality, service and efficiency"

"Uncertain economy that has led to an increase in patients who cannot pay for services"

"Competitive pressures from other providers in the region."

The hospitals said there are a "significant number" of local residents who receive health care in Little Rock, a 45-minute drive away.

"There is not a single hospital across the nation that is exempt from the pressures of today's changing environment," said Dan Slipkovich, Capella CEO. "We have a unique opportunity here in Hot Springs to build on the foundation of service both of these hospitals have established and to become a more competitive and efficient health care delivery system. Ultimately, we want people throughout the region we serve to choose Hot Springs for their health care needs."

The mergers and sales of hospitals are a growing trend.

"Given our financial pressures today, we can't risk staying as we are, and this affiliation just makes sense," Britton said. "Our vision is to find the best solution for this community that protects the great care already provided here, continues the charitable mission of Mercy and enhances the quality and efficiency of healthcare in Hot Springs."

Slipkovich added, "Given the importance of getting this right, we are spending a great deal of time over the next several weeks engaging physicians, employees and community leaders to help us shape what's best for the region and to build on the work already underway."