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VUMC to acquire Tennova Shelbyville and Tullahoma Hospitals from Community Health Systems, Inc., and partner with Tennova Clarksville Hospital

Sep. 30, 2020, 4:02 PM

 

by John Howser

Leaders of Vanderbilt University Medical Center announced plans to purchase Tennova Healthcare-Shelbyville and Tennova Healthcare-Harton hospitals from subsidiaries of Community Health Systems Inc. (CHS). At the same time, VUMC will acquire minority ownership in CHS’s Tennova Healthcare-Clarksville hospital.

A definitive agreement has been signed by VUMC for the acquisition of the Shelbyville and Tullahoma (Harton) hospitals and their related businesses, including physician clinic operations and outpatient services.

VUMC has also signed an agreement with Tennova’s existing minority partner, GHS Holdings, LLC, a wholly owned subsidiary of Clarksville Volunteer Health, Inc. (CVH), a Clarksville nonprofit, to acquire its 20% minority interest in Tennova Healthcare-Clarksville and related physician practices.

The partnership between Tennova Healthcare-Clarksville and VUMC is expected to create new opportunities to expand local medical resources for Clarksville, Montgomery County, and the surrounding region. Already, Tennova Healthcare-Clarksville and VUMC collaborate on oncology and neonatal intensive care in the community. Oncologists and a multidisciplinary team from Vanderbilt-Ingram Cancer Center provide care at the Gateway-Vanderbilt Cancer Treatment Center. And Tennova Healthcare-Clarksville’s Level 2B newborn intensive care unit is serviced by neonatologists from Monroe Carell Jr. Children’s Hospital at Vanderbilt who provide care for pre-term babies.

Through the acquisition of the hospitals in Shelbyville and Tullahoma, and the partnership with Tennova Healthcare-Clarksville, VUMC significantly increases its presence across Middle Tennessee with facilities and services now located in Bedford, Coffee, Davidson, Montgomery, Rutherford, Sumner, Williamson and Wilson counties. Currently under construction in Sumner County (Hendersonville) is a 31,000-square-foot facility that will offer adult outpatient specialty care, along with limited pediatric specialty care. In December 2019 VUMC opened the Monroe Carell Jr. Children’s Hospital Vanderbilt Surgery and Clinics in Rutherford County.

In a 2019 transaction with subsidiaries of CHS, VUMC acquired Tennova Healthcare-Lebanon, a 274-bed hospital in Lebanon, Tennessee, now called Vanderbilt Wilson County Hospital.

“We are continuing to strengthen our presence across Middle Tennessee so that we can fulfill the Medical Center’s mission to advance the health and well-being of the region we serve. As we have in other counties, we are making a significant commitment to the citizens of these communities and look forward to working together toward this important goal with our new colleagues at these hospitals and clinics,” said Jeff Balser, MD, PhD, President and CEO of VUMC and Dean of the Vanderbilt University School of Medicine.

The purchase of the Shelbyville and Tullahoma facilities and the minority ownership agreement with Tennova Healthcare-Clarksville are subject to regulatory review and are expected to be completed in the fourth quarter of 2020. Terms of the transactions will remain confidential.

In the interim, patients of the Shelbyville and Tullahoma hospitals will experience no interruption in care while leaders with VUMC and CHS work closely together to ensure a smooth transition of ownership.

“Serving the citizens of Shelbyville and Tullahoma through these hospitals and strengthening our relationship with Tennova Healthcare-Clarksville is an exciting next step for our health system. Each facility plays a vital role in their community and we are delighted to join with the physicians, nurses and staff at each hospital in their important work,” said C. Wright Pinson, MBA, MD, Deputy CEO and Chief Health System Officer for VUMC.

It is the commitment of VUMC to hire substantially all employees of Tennova Healthcare-Shelbyville and Tennova Healthcare-Harton who are in good standing when transfer of the hospitals’ ownership is complete. Tennova Healthcare-Clarksville and its employees and medical staff will remain a part of the Tennova network of hospitals.

“Clarksville Volunteer Health looks forward to the expansion of Vanderbilt’s role in the Clarksville-Montgomery County area,” said William H. Wyatt, Chairman of the Board of Directors of CVH. “Ensuring our residents have access to high quality health care is critical to the mission of CVH, and we are excited about the opportunity to grow Tennova Healthcare-Clarksville’s partnership with a world-class academic health system and ensure the citizens of our community enjoy continued and enhanced opportunities to receive first-rate care.”

Tennova Healthcare-Shelbyville is a 60-bed, Joint Commission-accredited hospital that employs approximately 275 physicians, nurses and staff and offers a range of inpatient and outpatient medical and surgical services, along with urgent care services. The hospital is certified by the American Heart Association. After 60 years of service to the citizens of Bedford County in its original facility, a new hospital was constructed in 2008. In 2019, nearly 1,000 patients were admitted to the hospital and approximately 1,600 inpatient and outpatient surgical procedures were performed.

Located in Tullahoma and employing approximately 450 physicians, nurses and staff, Tennova Healthcare-Harton is a 135-bed Joint Commission-accredited hospital offering a full range of inpatient and outpatient surgical and specialty services including a sleep center, cardiac rehabilitation and physical rehabilitation. The hospital is accredited by the Joint Commission and features an accredited Chest Pain Center. In 2017, the hospital celebrated 50 years of service to its community. In its most recent year, Tennova Healthcare-Harton admitted nearly 3,500 patients and performed nearly 4,800 inpatient and outpatient procedures.

Tennova Healthcare-Clarksville is a 270-bed facility that features a comprehensive range of inpatient and outpatient, medical and surgical services. Tennova Healthcare-Clarksville has been designated as an Accredited Chest Pain Center, a Blue Distinction Center for Maternity Care, a Wound Care Center of Distinction and earned the Gold Seal of Approval from The Joint Commission. The hospital also has a freestanding Emergency Room located a short distance from the hospital.

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