Overcoming Challenges: Deaconess Health System Expands with New Rural Hospital

Deaconess Health System has successfully acquired Jennie Stuart Health, marking a significant milestone for both organizations. This acquisition, announced earlier this month, comes after some community pushback in Hopkinsville, Kentucky, where Jennie Stuart is located.

Jennie Stuart operates a 194-bed hospital along with various specialized centers. Initial plans to join Deaconess, proposed in September 2024, led to objections from local residents. The opposition group, Save Jennie Stuart, even took legal action against the hospital’s board. However, a settlement allowed the acquisition to move forward, with Deaconess committing to invest millions into upgrading services at Jennie Stuart.

Eric Lee, CEO of Jennie Stuart, highlighted the financial pressures many rural hospitals face. Joining Deaconess, he noted, would enhance the hospital’s ability to provide quality care. “We are building on our legacy of excellent care, while opening the door to new opportunities,” he stated.

In support, Deaconess CEO Shawn McCoy emphasized the system’s dedication to enhancing healthcare services in the Hopkinsville area. They plan to invest at least $95 million into Jennie Stuart. This includes transitioning to a new electronic health records system, which is anticipated to cost several million.

To address community concerns, Deaconess assured that local control of the hospital would remain intact, with Jennie Stuart’s management team continuing in their roles.

In recent years, Deaconess has expanded significantly. They have 20 hospitals and over 150 healthcare locations across Indiana, Illinois, Kentucky, and Tennessee. Last year, they acquired Memorial Hospital and Health Care Center in Jasper, Indiana, and in 2022, they purchased four hospitals from Quorum Health in Illinois.

Financially, Deaconess is stable, holding an “AA” bond rating from Fitch Ratings. Their “regional hub strategy” aims to make healthcare more accessible while using larger hospitals mainly as referral centers. This approach benefits areas with growing populations and strong economies.

As the healthcare landscape continues to evolve, the partnership between Deaconess and Jennie Stuart could set a precedent for future collaborations in providing quality care to local communities.



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