October 14, 2019

By Barrett J. Brunsman – Staff reporter, Cincinnati Business Courier

TriHealth will spend $11 million to acquire the 40% minority stake in McCullough-Hyde Memorial Hospital, which had been retained by the foundation associated with the medical center in Butler County.

The McCullough-Hyde Memorial Hospital Foundation exercised its option in a 2015 affiliation agreement that required TriHealth to purchase the minority interest. Combined with the 60% interest already held by TriHealth, the Cincinnati-based hospital now owns 100% of McCullough-Hyde.

The deal closed late last week.

The hospital, which opened in 1957 adjacent to Miami University in Oxford, has been managed by TriHealth since 2015. McCullough-Hyde and its emergency department see more business from September through May, when 24,000 students at Miami swell the population of the town of about 6,000.

“TriHealth has been honored to provide care for the people of Oxford and the surrounding communities in Ohio and eastern Indiana, and this agreement demonstrates our long-term commitment to the hospital and its physicians, employees and volunteers,” said Mark Clement, CEO of TriHealth.

TriHealth committed to spend an additional $7 million on capital improvements at McCullough-Hyde Memorial Hospital and maintain substantially the same scope of clinical services currently being offered.

In addition, TriHealth will pay about $4 million in cash to the MHMH Foundation, which will be used by the foundation’s board of trustees to further advance its mission – including support of the hospital.

The foundation currently has more than $12 million in funds restricted by donor intent or dedicated to the hospital. The foundation’s board will continue to manage and direct existing investments and future donor gifts.

“The investments over the past several years, combined with the commitments in this latest agreement, position McCullough-Hyde Memorial Hospital for growth and expansion to serve the needs of this growing region,” said Michael Everett, president of McCullough-Hyde Memorial Hospital.

TriHealth paid $17 million to acquire a 60 percent stake in McCullough-Hyde in 2015.

Since then, TriHealth has made other significant enhancements, including expanded clinical specialty services at the hospital, three new surgical suites and a new information technology system. During that time, the hospital has experienced higher patient satisfaction, higher safety and quality scores, and an improved financial position, according to TriHealth.

The $17 million that TriHealth paid to become the majority partner in the hospital included $9.5 million for an electronic medical records system called Epic, $3.5 million to expand and improve clinical services, $2.5 million to help build a new emergency department, an immediate $1 million in cash and $500,000 over three years to support community health programs.

“The foundation believes TriHealth, during the past four and a half years, has fully met its commitment to the hospital and to the community,” said Alan Oak, chairman of the MHMH Foundation board. “The foundation is confident it is the right time to allow TriHealth to assume full membership interest of the hospital.”

Oak noted that challenges in the health care industry continue to grow, and the rate of change is accelerating.

“Taking this action is in the best interest of the residents and the communities in which they live and protects long-term benefits to our patients who rely on the hospital for their health care,” Oak said.

The original article can be found here on The Cincinnati Business Courier's Website.