Louisville-based Baptist Health is in talks to acquire Floyd Memorial Hospital and Medical Group in New Albany, Indiana.
Floyd Memorial and Baptist Health are entering a non-binding agreement to pursue a proposed acquisition. It includes a guaranteed capital investment of $125 million over the next five years to expand services at the facility, invest in improved technologies and transition to a new information technology platform.
“It gives us the opportunity to expand services,” said David Gray, president of Baptist Health Louisville. “It gives Floyd Memorial the opportunity to be part of a bigger hospital.”
Gray said at closing, Floyd County would receive approximately $75 million. The county would get another $75 million over 10 years for ongoing health care-related needs and activities.
This brings the total purchase price of the hospital to $150 million, according to Gray.
The negotiation is expected to be 90 to 120 days.
Members of the Floyd County Council voted Tuesday night in support of the deal.
Both organizations expect the agreement to be finalized Oct. 1. The hospital’s name will also change to reflect the relationship with Baptist Health.