University of Kansas Health System acquires Missouri hospital

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For an undisclosed sum, The University of Kansas Health System has acquired Liberty Hospital in Liberty, Missouri, the health system's first expansion into that state, with the definitive agreement signed this week.

Liberty Hospital's decision to become part of the University of Kansas Health System followed an extensive process by the facility and its Board of Trustees to assess and select the best partner, the hospital said on its website.

"Today marks a tremendous step in our journey as the premier provider of health and well-being in the Northland," said Dr. Raghu Adiga, president and CEO of Liberty Hospital. "This partnership will ensure the future of Liberty Hospital and our ability to meet the growing healthcare needs of people in the Northland and northwest Missouri."

WHAT'S THE IMPACT?

As part of the University of Kansas Health System, Liberty Hospital said it will expand access to high-quality healthcare for current and future patients in the Northland, and promised a more seamless experience receiving primary, specialty and subspecialty care.

Liberty Hospital and the University of Kansas Health System previously announced in November 2023 the organizations had signed a letter of intent for Liberty to join the health system. Since then, leaders from both organizations have conducted due diligence to reach definitive agreements, officials said.

As a key part of the agreement, those working at Liberty hospital will retain their employment, as will employed Liberty Hospital physicians and open medical staff for many services. The agreement will extend the University of Kansas Health System's specialized and subspecialized care to the Liberty Hospital service area and beyond as needed, including the University of Kansas Cancer Center.

The agreement also outlines significant investments over time by the health system in current Liberty Hospital services, facilities, infrastructure and technology through continued and expanded local operations. 

The Liberty Hospital Foundation will remain a separate entity. Branding, meanwhile, will evolve to include Liberty Hospital in the overall branding structure of The University of Kansas Health System, with the name "Liberty Hospital" included in future naming for the current facilities.

The two entities will continue planning for the closing of the deal, which is anticipated on July 1.

"Nothing changes today for patients, physicians, employees or the community," the system said.

THE LARGER TREND

The first quarter of 2024 saw a significant uptick in merger and acquisition activity, with 20 announced transactions – which, according to an April Kaufman Hall report, represents the strongest first quarter since Q1 2020, just before the start of the COVID-19 pandemic.

According to Kaufman Hall, the number of transactions logged during the quarter are part of a slow but steady climb out of the slowdown in activity seen during the pandemic, significantly exceeding the number of transactions announced in Q1 of 2021, 2022 and 2023.

ON THE RECORD

"As the region's largest locally headquartered health system, we are committed to ensuring patients and their families in our region have access to the highest quality care close to home," said Bob Page, president and CEO of the University of Kansas Health System. "As a health system, we put patients first in every decision we make. We believe and have proven when you make quality and service your priorities and have the very best people supported in the best and right ways, great things happen. We are excited to have the leaders, physicians, nurses, other care providers and employees of Liberty Hospital join our health system and look forward to serving even more people in our region and beyond."
 

Jeff Lagasse is editor of Healthcare Finance News.
Email: jlagasse@himss.org
Healthcare Finance News is a HIMSS Media publication.