Baptist Health of Little Rock announced Wednesday that it will buy Sparks Health System, which includes Sparks Regional Medical Center in Fort Smith, Sparks Medical Center in Van Buren and “affiliated physician clinics covering western Arkansas and eastern Oklahoma.”
A purchase price for the deal, which requires regulatory approval and is set to close in the fourth quarter, was not disclosed.
Arkansas Business reported July 2 that a deal was in the works. At the time, it was unclear whether the deal was for the Fort Smith hospital alone or for Sparks Health System.
“I’m humbled to think of the opportunities we have for the state’s first hospital in Fort Smith to join Baptist Health, the state’s largest and most comprehensive health-care system,” Troy Wells, president and CEO of Baptist Health, said in a news release. “It is an honor to align our organization with the outstanding reputation of the entire Sparks family and its team of dedicated physicians and caregivers.”
Sparks’ Fort Smith hospital has 492 beds and reported $264.4 million in net patient revenue for the fiscal year that ended Sept. 30, 2016, the latest figure available to Arkansas Business. That year it had net income of $31.2 million.
Sparks’ Van Buren hospital has 103 beds and reported $17.7 million in net patient revenue and a loss of $874,902 for calendar year 2016.
Sparks Health System has about 2,000 employees. It is owned by publicly traded Community Health Systems in Franklin, Tennessee (NYSE: CYH), which has 119 hospitals in 20 states. Wednesday’s sale is the latest in a string of divestitures by the company amid a multibillion-dollar debt load. This year alone, the company has reached agreements to sell seven hospitals and completed the sale of six.
Baptist said the two medical centers will increase the total number of Baptist hospitals to 11. The sale will leave Community Health Systems with six hospitals in Arkansas, one each in El Dorado, Fayetteville, Johnson, Springdale, Bentonville and Siloam Springs.
“Baptist Health has a proven track record of supporting Arkansas communities and expanding access to the highest quality care available, and this venture is a huge win for this region,” said Brandon Bullard, interim CEO of Sparks Health System. “Baptist Health has a strong reputation for innovative health and wellness initiatives that are helping communities live healthier lives.”
Nonprofit Baptist Health has about 9,300 employees. The faith-based health care organization operates nine hospitals, including Baptist Health Medical Center-Little Rock, Baptist Health Medical Center-North Little Rock and Baptist Health Medical Center-Conway.
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