Capella Healthcare, Huntsville Hospital Deal Could Convert Hartselle Medical Center to Outpatient Facility

Huntsville Hospital and Capella Healthcare of Franklin, Tenn., jointly announced they have tentatively agreed for Huntsville Hospital to purchase the assets of Hartselle Medical Center, which could eventually be converted to an outpatient facility, according to a Madison County Record report.

Hartselle Medical Center had not been able to identify a new owner willing to provide inpatient services, according to the report. In announcing the closing of the hospital earlier this year, facility owner Mark Medley cited healthcare reform obstacles, a weak economy and a tough reimbursement climate.

Huntsville Hospital CEO David Spillers said while the hospital will not work as an inpatient facility, there may be an opportunity to covert the hospital to an outpatient facility. He said Huntsville plans to maintain access to services for physicians in the community.

The agreement between Huntsville and Capella Healthcare is expected to be finalized within 45 days.

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