Covenant merger deal adds eighth hospital
Tuesday July 13, 2010
Morristown-Hamblen Healthcare action receives final approval
A merger between Covenant Health and Morristown-Hamblen Healthcare System won Federal Trade Commission approval.
Covenant has said it plans to spend a combined $100 million on capital projects and assumption of Morristown-Hamblen's debt. Covenant said it had already repaid $29.9 million in bond debt owed by Morristown-Hamblen and secured by Hamblen County, reducing the county's debt burden and eliminating nearly all Morristown-Hamblen's debt.
Over the next 12 to 18 months, Covenant will spend $7 million to expand capacity and information technology capabilities.
"We are looking forward to investing in resources and expertise in partnership with the Morristown community to move MHHS forward as a stellar regional health system," Covenant Health President and CEO Tony Spezia said in a statement.
Richard L. Clark, president and CEO of Morristown-Hamblen called the merger "a positive transition in the life of our hospital."
Covenant Health has six acute care hospitals in Knox and surrounding counties and a psychiatric hospital in Blount County. Its facilities include Fort Sanders Regional and Parkwest in Knoxville, Methodist Medical Center in Oak Ridge, Fort Loudoun Medical Center in Lenoir City, LeConte Medical Center in Sevierville, and Roane Medical Center in Harriman.
The 167-bed Morristown-Hamblen hospital is on the eastern edge of Covenant's market and serves an eight-county region known as the Lakeway Area.
Source: Knoxville News Sentinel
