Creating the Largest Not-For-Profit Health System in the Region
As health systems look to expand their footprint to compete on a national level and create economies of scale, many hospitals are merging. By streamlining operations, hospital system executives and boards believe they are able to lower costs and improve care. Most recently, Waller represented Mississippi Baptist Health Systems in its merger with Baptist Memorial Health Care, creating the largest not-for-profit healthcare system in the region.
Waller was uniquely positioned in this transaction as an advisor to Mississippi Baptist’s Board of Trustees as they navigated through the complex legal issues inherent in the combination of two large not-for-profit healthcare systems, helping to ensure their board met its fiduciary responsibilities when overseeing the merger. In addition to evaluating a wide range of potential legal issues at 21 hospitals across three states, the deal also included the evaluation of an even larger number of joint ventures, numerous physician practices and ancillary businesses resulting in a transformational and historic transaction for both organizations.
The deal, which required approval by federal regulators, combines Memphis-based Baptist Memorial's 17 hospitals across Arkansas, Mississippi and Tennessee with Mississippi Baptist's four hospitals. The Baptist hospital merger is an excellent example of two regional health systems with a common, faith-based mission coming together for scale and shared expertise.