After 122 years as a locally operated nonprofit, Sparks Health System in Fort Smith is partnering with Jackson Hospital Affiliates (JHA), a division of Jackson Healthcare, LLC to stay afloat. The Sparks Health System Board of Trustees March 30 approved a letter of intent for a purchase of Sparks by the Alpharetta, Georgia-based company.

 

Sparks President Frederick "Ted" Woodrell explained that the sale, while necessary, is also a strategic growth opportunity for both entities.

 

"Jackson represents a company that provides resources we don't have, and we provide something to Jackson that they don't have," Woodrell said. "We see this not as duplication of efforts, but an opportunity for synergy between Jackson's 10 corporations and our healthcare enterprise."

 

Jackson Healthcare has 10 subsidiary hospital-related companies, including Jackson Hospital Affiliates, which formed in 2008 with the intent of purchasing hospitals. Sparks will be JHA's first property. Woodrell said that while this newly formed company has not previously operated a health system, JHA President Gary Bell has more than 30 years of experience in hospital operations and that the ancillary companies' varied areas of expertise will all benefit Sparks' growth and continued relevance to the Fort Smith community.

 

Besides JHA, Jackson Healthcare's operating entities include: Jackson & Coker,

 

Jackson Therapy Partners, LocumTenens.com, Parker HealthcareIT, Patient

 

Placement Systems, Premier Anesthesia, StatCom, and Travel Nurse Solutions.

 

Woodrell said each of these services—particularly the highly established physician placement firm Jackson & Coker—will strengthen Sparks as a health system and enable it to bring more services and specialists to the area while increasing quality and efficiency.

 

These added services, and the mutual benefit Sparks offers the brand-new Jackson Hospital Affiliates, which needs to prove itself by demonstrating excellence in hospital operations, were among the factors that put JHA in the lead after a competitive bidding process.

 

"They bring something to the table that we'll use every day—we'll use these services regularly. Then, we bring a really sophisticated healthcare enterprise, to be a great place for them to demonstrate their capabilities. It's a win-win," Woodrell explained.

 

Jackson Hospital Affiliates President Gary Bell said in a news release that Jackson Healthcare is enthusiastic about Sparks: "We are very excited about the opportunity to work with such an excellent organization. As we've grown our company, we've spent a considerable amount of time looking for the right hospital and community with which to partner. Our intent is to make Sparks our flagship facility and demonstrate our commitment and focus to providing the highest level of care as well as being a good community steward."

 

Rumors ranging from widespread layoffs to a possible sale had been swirling around the hospital for weeks, one nurse who declined to be named told Medical News of Arkansas. Reports indicate that the official news of the pending sale was greeted predominantly with relief.

 

Hospital administration sent an e-mail with the news to managers immediately following the board decision, and a managers meeting followed. Over the next few days, the hospital held a variety of employee meetings, reaching over 1000 employees, as well as meetings with medical staff and community leaders.

 

Woodrell said that while there are always some people who lament change, the response was overwhelmingly positive. "I think generally everybody was pleased that this would give us stability in these tough economic times."

 

Many employees' concerns were assuaged by the available details of the sale. Once the agreement becomes official, all personnel employed by Sparks Health

 

System at closing will be offered employment by Jackson Hospital Affiliates at

 

market-competitive rates of compensation. Benefit plans, accrued vacation, sick

 

time and retirement details, specifically the Defined Benefit Retirement Program,

 

will not change. Employees' length of service with Sparks will be applied for

 

purposes of benefits vesting.

 

It is yet to be decided whether Woodrell will remain at Sparks' helm.

 

Woodrell said there has not been too much dismay expressed over not being a non-profit any more. "The truth is, we still have to make a profit anyway as a nonprofit. We call it excess revenues, but we have to have excess revenues to reinvest. It changes a little bit, but not the core missions."

 

The Board, which officially started taking proposals in November after several months of exploring the system's options, had three objectives in finding a partner, he said. "One was to continue our mission, which this does. Two, was to take care of our employees, which this does. Three, was to take care of those people who have lent us money fairly, which this does," he said. "We addressed all the key elements with this transaction, and I feel real good about it. I think it adds to our overall financial stability and allows us to expand services faster. The future for Sparks is bright."

 

The letter of intent ratified by the Sparks Board of Trustees between Sparks Health System and Jackson Hospital Affiliates is non-binding and subject to negotiation of the definitive agreement. The parties will spend the next two to three months performing due diligence and finalizing the details necessary to close the transaction, with a goal of a definitive signing of a Letter of Intent by May 15, 2009, and the closing of the transaction to be completed no later than June 30, 2009.