CoxHealth, CMH cancel merger

Just seven months after they penned the deal, CoxHealth and Citizens Memorial Healthcare called off a planned merger. 

In October 2016, CoxHealth signed a letter of intent to buy CMH in a deal valued at $120 million over seven years. Up front, CoxHealth was set to pay CMH $40 million and put $10 million toward a new foundation. 

“We have decided that the timing is not right for this type of relationship,” said Donald Babb, CEO of the Bolivar-based CMH, in a news release. “Our two entities are closer than ever and we anticipate a close working relationship going forward.

“CMH had its best year in history last year and is on track to perform even better this year. We have numerous building projects and strategic planning opportunities that will continue the growth that we’ve seen since starting in 1982.”

Both health care organizations recently were honored as part of Springfield Business Journal’s Dynamic Dozen awards for fast-growth companies. CMH posted 2016 revenue of $435.2 million and a three-year growth rate of 22 percent. At CoxHealth, the Springfield-based system pulled in 2016 revenue of $3.99 billion, marking 16 percent three-year growth. 

“CMH and CoxHealth have maintained a positive working relationship for numerous years and we will continue to have a close relationship,” CoxHealth President and CEO Steve Edwards said in the release. “We all have the same purpose in mind – to provide exceptional care to the patients we serve.”

CoxHealth spokeswoman Kaitlyn McConnell declined to comment further on the split, saying the release spoke for itself, but added the decision was amicable.
 
According to terms of the original deal, CMH would have retained its name in a co-branded format with CoxHealth and Babb would have kept his position. CMH also would have had two seats on the CoxHealth board. 

The two systems still will work together in part. CMH recently signed a five-year contract with Cox Air Care to provide emergency air services for the hospital, according to the release. Previously, Mercy Springfield Life Line provided air ambulance services at CMH for 12 years.

CMH employs more than 2,400 and includes two hospitals and 32 primary and specialty care clinics, seven long-term care facilities, five independent living communities, an assisted living facility, a residential care facility and five ambulance stations. 
CoxHealth employs over 11,000 to serve a 25-county service area in southwest Missouri and northwest Arkansas, through five hospitals and more than 80 clinics. 

CoxHealth’s most recent purchase was Skaggs Regional Medical Center in 2013, according to Springfield Business Journal archives. In 1998, it bought the Springfield locations of Columbia HCA, and in 1993, it bought what was then known as St. Vincent’s Hospital in Monett and is now called Cox Monett.

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