Triad Partners With Sparks

Sparks Health System in Fort Smith agreed Oct. 28 to a partnership with Triad Hospitals Inc. to operate the health system and build a new hospital. A letter of intent to enter the agreement was signed by the Sparks Health System Board of Trustees, according to a news release issued by Sparks. r

Triad brings $150 million to the table in the agreement and Sparks will contribute its working capital, equipment and business operations to the new partnership. Sparks Health System will remain a not-for-profit 501(c)(3) tax-exempt corporation, but the new joint venture will be a private, for-profit company and will pay all applicable taxes. r

All employees are expected to be offered employment by Triad “at market-competitive rates of compensation” and will be eligible for Triad benefits, according to the news release. r

Tom Webb, chairman of the Sparks board of trustees, said a new corporate entity will be formed between Sparks and Triad. r

“We were never interested in selling Sparks,” Webb said, calling Triad “a capital partner.”r

The plan includes a new eight-member board of directors, including four community/Sparks representatives and four Triad representatives, with the chairman to be appointed by the community representatives.r

“Given out 116-year history of service to the community, we wanted to find someone to partner with us, to come alongside and join us in furthering our mission,” Webb added. r

Plans for the new hospital will replace a pending $40 million renovation project for Sparks’ existing hospital. r

The letter of intent between Sparks and Triad is non-binding and subject to negotiation of the final agreement and regulatory approval. r

Triad owns the Northwest Health System Inc. which includes hospitals in Springdale, Bentonville and Johnson.r