Baptist Health Care’s (BHC) plan to finalize the acquisition of West Florida Hospital from Hospital Corporation of America (HCA) by the end of 2008 has fallen victim to the nation’s weakened economy and national financial meltdown.

At 8 a.m. on January 1, HCA informed BHC that they were exercising their option to terminate the Asset Purchase Agreement (APA). Since signing the APA in June, BHC had successfully met all of the regulatory and legal requirements needed to make the acquisition. As with most agreements of this nature, the APA stated that the purchase was subject to obtaining financing within specified guidelines and timeframe.

While we strived to obtain the financing and complete the purchase by the end of the year, the widespread instability in the credit markets has halted our plans. At this time, discussions between the two organizations are not currently planned. However, Baptist Health Care remains committed to appropriately expanding as opportunities become available to better serve the health care needs of the northwest Florida and south Alabama region.

Baptist Health Care and West Florida Hospital are two great organizations that remain dedicated to delivering high quality health care.

I am grateful to our board members, physicians and employees for their efforts to join together these two strong organizations, and now for their support as we continue to serve the needs of our community.

Challenges Ahead for our Community
As we are all aware, the economy is in a recession. These are very difficult times for many businesses and service providers, and health care is no different. We operate 365 days a year with a mission that places patient welfare as our No. 1 priority. We don’t make a product or sell services globally, we save lives in our community. Even in the best of times, not-for-profit hospitals and social service organizations operate under a tough financial model. But during an economic downturn, those challenges intensify.

With our nation’s and region’s economic troubles, fewer patients and clients are seeking care while at the same time a growing portion of patients and clients need help paying for care. We estimate that in 2008, Baptist will have provided more than $27 million in charity care. This figure does not include bad debts or losses on Medicare and Medicaid. These numbers are likely to continue to grow for 2009 as Baptist Health Care continues to meet our mission of caring for the poor and uninsured. As we look toward the future, we will continue to look for ways to better serve the needs of our community.

The Future of Baptist Health Care is Bright
Our future will be much like our proud past. Since 1951, Baptist has faithfully and compassionately served the residents of northwest Florida and south Alabama. For more than a decade, Baptist Health Care has earned a reputation for providing quality health care with superior customer satisfaction. By creating a strong, service-oriented culture of excellence among our employees, Baptist Health Care has spent multiple years in the top one percent in patient satisfaction surveys. Baptist remains a financially strong, confident and solid organization.

The knowledge we have gained through planning and preparing for the West Florida Hospital acquisition will serve us well as we continue to grow and serve the community. We’ve had the privilege of in depth conversations with many local physicians which have provided us a fuller perspective of the health care market.

Lou Holtz once said, “Show me someone who has done something worthwhile, and I’ll show you someone who has overcome adversity.” Challenges only make us stronger. Our vision hasn’t changed, but the paths we take in the future, the investments and partnerships we continue to make in the community may change.

Rooted by our rich history, we step forward and invite our talented, passionate employees and loyal community to join us as we reignite our renowned culture and desire to help others. Building upon our strengths, we embrace these guiding principles.

- Commitment to the highest level of customer service and satisfaction.
- Provide the best technology, services and expertise for superior quality health care for patients and their families.
- Continue to meet the growing health care needs of the poor and uninsured—a hallmark of Baptist Health Care’s Mission.

As we look toward the future one thing is certain: there will not be a lack of opportunity. With faith, purpose and commitment to our patients and ourselves, Baptist Health Care will become the best health care system in America.