MADISONVILLE, Ky. (WFIE) - The Baptist Health and Deaconess Health System boards of directors have signed a memorandum of understanding to create a joint venture to operate the Madisonville hospital and medical group.
It’s expected to be finalized this summer.
The medical staff and employees at both organizations were notified Tuesday.
Officials say all current Madisonville employees will continue with the new organization, with the same rates of pay, seniority and with similar benefit plans.
Through the joint venture, Baptist Health and Deaconess will jointly operate the hospital, medical group and associated outpatient facilities.
Initial capital investments of more than $50 million will include surgical suite enhancements, emergency room renovations and cancer care facility upgrades.
Physician recruitment will also be a focus of the new medical group that will employ the physicians, providers and staff currently part of the Baptist Health Medical Group in the Madisonville area.
“Rural hospitals today are struggling, facing huge challenges to provide the healthcare needed to best serve their communities,” said Gerard Colman, Baptist Health CEO. “With Baptist Health partnering with Deaconess, the Madisonville community will have an exceptional level of support from Kentucky’s largest healthcare system and from the leading healthcare provider in the Tri-State region, to ensure continued local direction and additional investment in healthcare services.”
“The goal of this arrangement is to keep quality healthcare local, with local decision-making and a local focus,” said Shawn McCoy, Deaconess CEO. “Deaconess has worked with Baptist Health and other local providers in Kentucky for many years, as both a regional transfer center and in ensuring that specialized services are available throughout the region.”
“We anticipate growing and expanding services particularly in primary care, surgery, cardiac and cancer care – so people can continue to access quality healthcare close to home,” said Robert Ramey, Baptist Health Madisonville president.
Baptist Health Madisonville, formerly known as Trover Health System, joined Baptist Health in 2012.