Negotiations end with no agreement to sell Singing River Health System. What’s next?
Months of negotiations between the Jackson County Supervisors and Franciscan Missionaries of Our Lady Health System ended without an agreement to sell Singing River Health Systems hospitals and clinics.
“Both parties engaged in extensive negotiations in an effort to reach an agreement, but ultimately, consensus could not be achieved,” Singing River Health System said in a press release Wednesday night.
The choice to end discussions was a joint decision, according to the press release.
The sale would have included the three hospitals in Pascagoula, Ocean Springs and Gulfport and dozens of clinics and other SRHS facilities in South Mississippi.
Franciscan Missionaries was selected as the preferred buyer in March, following a request for proposals, and the sale was expected to close this fall.
The supervisors voted in September 2022 to sell the health system and worked with Raymond James, a third-party healthcare-focused advisory firm, to find prospective buyers.
Ochsner Health System, based in Louisiana, was the expected choice, since the provider already has a relationship with SRHS. Instead the supervisors went with Franciscan Missionaries, which has hospitals, clinics and physicians throughout Louisiana and at St. Dominic’s Hospital in Jackson
Now it’s back to the beginning for Jackson County, which owns Singing River Health System.
Ken Taylor, president of the board of supervisors, indicated the process will begin again and said he is confident the county will find a partner to ensure top-quality patient care.
Laurin St. Pe, who became Interim CEO of Singing River Health System during the negotiations, said the health system will continue to work closely with the board of supervisors to help achieve long-term goals and ensure high-quality care.
Richard Vath, MD, president and CEO of FMOLHS, also came into his job since the negotiations began.
“We have been quite impressed with SRHS and the County Board’s approach to their mission,” he said. “At this unprecedented time of uncertainty in healthcare, we regret that both parties could not reach consensus. We wish the very best for Jackson County and SRHS in the future.”
This story was originally published October 26, 2023 at 8:18 AM.
