Noble Health to acquire SSM Health's Audrain County hospital

<p>Don Peterson</p>

Don Peterson

SSM Health and Noble Health signed a definitive agreement to transfer ownership of SSM St. Mary's Hospital - Audrain to Noble Health, the two jointly announced Friday.

The two health systems signed a letter of intent in July, beginning a period of exclusive negotiation regarding the 100-year-old Mexico hospital purchased by SSM Health in 2013. The organizations will now partner to work through the necessary details to ensure a smooth transition for patients and team members, the two stated in a joint news release.

If all goes as planned, transfer to Noble Health will occur by the end of March - though there's much to be done between now and then, including switching the Mexico hospital to a new electronic medical records system, according to Noble Health board Executive Chairman Don Peterson.

"Throughout this process, Noble Health has been an excellent partner and repeatedly demonstrated their commitment to not only preserving, but enhancing, the high-quality compassionate care already provided by our team members in Audrain," SSM Health President and CEO Laura Kaiser said. "We believe this is the best way to ensure the long-term sustainability of quality care in this community."

The deal between SSM and Noble Health also includes ownership of community medical group practices associated with St. Mary's Hospital - Audrain, including the SSM Health Urgent Care facility. Peterson declined to share the financial details of the deal.

St. Louis-based SSM Health is also exploring the sale of its St. Mary's Hospital in Jefferson City, after announcing in November 2020 it has signed a letter of intent with Tennessee-based Quorum Health.

Peterson said Noble Health recently hired someone to take over as CEO at St. Mary's Hospital - Audrain, though he can't yet release the person's name.

Headquartered in Kansas City, Noble Health was founded in late 2019. The corporation took over management of its first hospital, Callaway Community Hospital (formerly Fulton Medical Center), in late 2019.

"Noble Health's goal is to serve the residents of Audrain County with comprehensive, high-quality care and we look forward to continuously working to offer the right resources to the community," Peterson said. "We are champions of hometown health care and understand how important it is to deliver great care close to home. We're excited to officially become part of the community, providing the best service to help the people of Audrain County better their health and continue to thrive."

From the beginning, Noble Health's management has signaled interest in expanding and building a network of hospitals in the area. In fact, Peterson said Monday, Noble Health is currently in talks with "two or three" other hospitals about potential acquisitions, though he said nondisclosure agreements prevent him from saying more.

"Our goal would be to have another two facilities acquired before the end of this year," he said.

St. Mary's Hospital - Audrain opened in 1918 as Audrain Medical Center. The 70-bed community hospital offers a range of services including emergency care, cardiology services, medical imaging, orthopedics, a senior care unit, surgical services and a cancer screening program.

Peterson said he hopes to revive services St. Mary's Hospital - Audrain has ceased to offer over the years. He noted Noble Health has found success in doing so at the Fulton hospital, which now offers surgeries and will soon have an expanded ICU.

"We'll add services back that were shuttered - labor and delivery, heart medicine; we'll get the cancer center back up and running," he said. "It's about restoring the facility and getting revenues up to levels that are sustainable in the long term."

He also mentioned reopening clinics closed by SSM Health in 2020, though that likely won't include its shuttered Fulton clinic.

Peterson claimed that by acquiring hospitals, Noble Health takes on much more financial risk than a management company would - and thus the company has greater interest in ensuring the success of the hospitals it runs. However, the Mexico hospital will continue to operate as a not-for-profit facility, he said.

He sees potential benefits for both St. Mary's Hospital - Audrain and the Callaway Community Hospital. Because the two are geographically close together, they can share staff members and services.

"Part of our operating thesis is to achieve economies of scale by sharing resources across the facilities we operate," Peterson said. "We need our hospitals to cooperate with each other."

Peterson urged the patients of St. Mary's Hospital - Audrain to give Noble Health a chance.

"The folks in these communities are really key to making this happen," he said. "We need their support to make these hospitals viable for their community for the long term. We hope our investment is returned in kind by the community."