LA PORTE - IU Health La Porte and Starke hospitals have signed a letter of intent to potentially partner with a subsidiary of Community Health Systems.
The Board of Directors of IU Health La Porte Hospital announced Monday that they are entering into exclusive negotiations with a subsidiary of Community Health Systems (CHS) and IU Health to strengthen and advance healthcare services in Northwest Indiana.
"After months of research and exploration, it is clear that CHS meets and exceeds the criteria we set forth in our search," said Scott Siefker, chairperson of the IU Health La Porte Hospital Board of Directors.
The three organizations have signed a non-binding agreement to form a joint venture limited liability company that will include IU Health La Porte and Starke hospitals and all related entities, including physician practices.
"La Porte and Starke hospitals have been our community's trusted home for healthcare for generations, and this agreement, when complete, will solidify our ability to provide high quality, accessible care to our community," said Siefker.
The letter of intent is not a final agreement, and the parties now enter into a period of due diligence and negotiations over the final details of the agreement.
The board of IU Health La Porte Hospital recognized a healthy future for La Porte and Starke counties depends on strong regional healthcare networks and that exploring an affiliation while financially strong would appeal to other high quality systems.
"Through an affiliation with CHS, we will not only strengthen the quality and access to healthcare in our region for generations to come, but we will also bring substantial investment and resources to our community and health system while including provisions for charity care consistent with our current polices," said Thor Thordarson, President and CEO of IU Health La Porte Hospital.
The Board of Directors of IU Health La Porte Hospital, along with IU Health leadership announced they would seek a partner to help it expand its provider and facility networks in September 2014.
The decision to consider an affiliation with CHS were based on a set of criteria developed by local leaders, physicians, board members, hospital and healthcare colleagues, and community partners to determine what La Porte and Starke counties need from a potential affiliate.
These criteria included: a commitment to the highest quality of patient care and service; clear vision for future growth; financial stability to support the hospital's strength for the long term; and a common culture that reflects a deep appreciation for the physicians, nurses, staff, and others who help deliver excellent, local care.
CHS is one of the largest publicly-traded hospital companies in the United States and a leading operator of general acute care hospitals in communities across the country.
Through its subsidiaries, the company owns, leases and operates more than 200 affiliated hospitals in 29 states, including Porter Regional Hospital in Valparaiso and eight other hospitals in Indiana.