With the go-ahead from government officials and both hospital boards, Floyd Memorial Hospital and Health Services has moved one step closer to becoming part of the Baptist Health Family.

A binding asset purchase agreement was signed on June 28, following its approval by the Floyd County Commissioners, Floyd County Council and Floyd Memorial Board of Trustees. The Baptist Health Board of Directors approved the transaction earlier today in a separate meeting.

Signing of the agreement is the second step toward the hospital being acquired by Louisville, Ky.-based Baptist Health. The final step will be the closing, expected to occur on Sept. 30.

After closing, the hospital will be known as Baptist Health Floyd, in keeping with Baptist Health’s tradition of linking the hospital name with its geographic location.

The Transaction

The sale price includes capital investments by Baptist Health in Baptist Health Floyd of $140 million over the next seven years to expand services, invest in improved technologies and transition to Epic, one of the highest-rated electronic medical record systems in the nation.

Because the hospital was county-owned, Floyd County will receive about $75 million at closing (after paying transaction costs). In addition, another $61 million will be paid over the next 10 years, some designated for ongoing healthcare-related needs and activities.

Baptist Health, one of three finalists in the acquisition process, was considered a natural fit for Floyd Memorial because it has an established and trusted presence in the Kentuckiana community. Baptist Health and Floyd Memorial already share some common services with their open heart and weight-loss surgery programs.