Ocala, Fla. (Wednesday, March 19, 2014) – The Marion County Hospital District Trustees today announced that they have executed a definitive agreement with a subsidiary of Community Health Systems, Inc. (CHS) for the long-term lease of Munroe Regional Health System and its assets which include the 421-bed Munroe Regional Medical Center. The parties expect to complete the transaction in the second quarter of this year, subject to the necessary regulatory approvals.
“Over the last six (6) years, the Board of Directors and Trustees have looked toward Munroe Regional's future and focused on finding the best organization with which to enter into a new long term lease arrangement,” said Jon Kurtz, Chairman of the Marion County Hospital District Trustees. “The Trustees’ goal has been to keep Munroe Regional sustainable and recognized as one of America’s best hospitals for high quality patient care. Today marks a historical day for our associates, physicians, volunteers and community. This affiliation will strengthen Munroe’s future and will allow the medical center to continue its 116-year legacy of providing high quality and safe care to the residents of our community. Much due diligence has been done over the past months and we thank everyone at Munroe Regional for their professionalism and undivided attention to patient care during this process."
Among the benefits to the lease agreement are a commitment to pay approximately $200 million for the rights to operate Munroe Regional for the next 40 years and an investment of $150 million into capital improvements to the healthcare facilities. An additional commitment has been made to invest $75 million in capital expenditures in equipment, physician recruitment and new service development over the initial five years following the transaction close. The hospital will operate under the guidance of a local Board of Trustees consisting of physicians and local community leaders.
UF Health Shands Hospital will have a clinical affiliation agreement with Munroe Regional as it continues to invest in clinical integration. UF Health Shands Hospital and Munroe Regional will develop a clinical affiliation committee composed of physicians from the hospital’s medical staff and from University of Florida’s faculty to provide for the development of clinical programs in Ocala that would benefit patients in Marion County and surrounding communities and provide for academic collaborative opportunities including the possibility of a residency affiliation between the hospital and Shands.
“Munroe Regional Medical Center is looking forward to becoming an affiliate of one of the largest hospital companies in the U.S. The exciting clinical collaboration opportunities with UF Health Shands Hospital will enhance our ability to provide high quality care to the patients of Marion County and surrounding communities,” said Rich Mutarelli, Interim President & CEO of Munroe Regional Health System, Inc. “I want to thank the Marion County Hospital District Trustees and the Munroe Regional Health System Board of Directors for their perseverance during the entire process. Their unwavering dedication has ensured that Munroe’s long standing commitment to our community remains for years to come. I also want to thank each of our employees, physicians and volunteers for their commitment and dedication to the medical center. They have remained focused on caring for the patients we serve and have not been distracted by this business transaction. They are what make Munroe so special.”
About Munroe Regional Medical Center
Munroe Regional Medical Center is an acute care hospital located in Ocala, Florida. Munroe Regional has been serving the residents of Marion County and surrounding communities for 116-years. The medical center has 421 licensed beds, 2,700 associates, 500 physicians and 1,600 volunteers. Munroe Regional admits over 21,000 patients each year, treats over 106,000 in three emergency departments, and sees another 54,000 for other outpatient needs. Munroe Regional’s mission is to improve the health of our community by delivering compassionate, innovative care through exceptional people doing extraordinary works. Munroe Regional is located at 1500 SW 1st Ave, Ocala, Florida. Website address is www.MunroeRegional.com. Main telephone number is (352) 351-7200.