Year in Review: St. Mary’s Healthcare Acquires Lavonia Hospital

One of the biggest stories of 2015 year was the sale of Ty Cobb Regional Medical Center to St. Mary’s Healthcare System of Athens.

In February, St. Mary’s officials announced they had signed a letter of intent to purchase the struggling hospital in Lavonia.

In May, Ty Cobb Healthcare officials and St. Mary’s Healthcare officials held a public hearing at Ty Cobb Regional to answer questions and hear from citizens regarding the pending sale.

At that meeting, Ty Cobb Healthcare CEO Greg Hearn explained that if the sale to St. Mary’s fell through, the hospital would close for good by summer.

Hearn told those gathered the hospital had been losing millions every month since it opened in July 2012.

But in early June, the sale was finalized.

St. Mary’s closed on Ty Cobb Regional on June 1 and immediately changed the name to St. Mary’s Sacred Heart Hospital.

McKenna announced immediate changes in personnel as well as several improvements in specialty care.

Since the sale, St. Mary’s has committed to investing an additional $2.4 million in St. Mary’s Sacred Heart Hospital to improve patient safety and upgrade technology and services in areas ranging from the mother/baby unit to the operating rooms.

Under the terms of the sale, St. Mary’s and its parent organization, Trinity Health, paid $12.9 million for the 56-bed hospital, its Certificate of Need, grounds, and certain related services such as Clear Creek OB/GYN, Healthworks, and the wellness center.

Ty Cobb Healthcare System retained the Gables, Home Base Health Services, LifeSprings, the Ty Cobb Museum, and rental properties.

St. Mary’s did not acquire the outstanding bond debt from the construction of the hospital, which was around $62 million.