Freeman Health System in Joplin, Mo., to acquire Northwest Health for $112 million

Joplin, Mo.-based Freeman Health System said Thursday (March 5) that it has agreed to purchase Springdale-based Northwest Health, a subsidiary of Franklin, Tenn.-based Community Health Systems. Freeman will pay $112 million for Northwest Health.

Community Health Systems said Thursday that it’s agreed to sell substantially all the assets of the 222-bed Northwest Medical Center – Springdale, 128-bed Northwest Medical Center – Bentonville, 64-bed Willow Creek Women’s Hospital in Johnson, 73-bed Siloam Springs Regional Hospital, and Northwest Health’s associated outpatient centers and practices.

The deal is expected to be completed in the second quarter of this year, pending regulatory approvals and closing conditions.

Asked about additional details, such as how many clinics are included in the deal, a Freeman spokesperson said, “we’ve shared all the information we are able to provide.”

Freeman Health System includes Freeman Hospital West, Freeman Hospital East, Freeman Neosho Hospital and Ozark Center, two urgent care clinics, dozens of physician clinics and a variety of specialty services. The nonprofit health system provides cancer care, heart and vascular care, neurology and neurosurgery, orthopedics, children’s services, and women’s services, and has more than 300 physicians on staff.

According to Freeman, Northwest Health is expected to transition to a nonprofit health system upon completion of the deal. Northwest Health will also be renamed after the deal is completed. Northwest Health locations will be rebranded “to reflect our unified health system.” The timing and naming will be released after the deal is completed.

Freeman is expected to retain Northwest Health’s more than 1,500 physicians and caregivers in the deal, and its leadership structure is expected to remain unchanged. When the deal is completed, Northwest Health leaders will report to Freeman Health System.

“This is a meaningful moment for Freeman and the communities we serve,” said Matthew Fry, president and CEO of Freeman Health System. “While this marks our first expansion into Arkansas, it is a natural extension of our longstanding regional presence. Northwest Health has a long history of caring for its communities, and we are honored to continue that legacy while bringing forward Freeman’s commitment to compassionate, community-focused care.”

According to a news release, acquiring Northwest Health “aligns with Freeman Health System’s Freeman Forward strategic plan to expand access, support caregivers, and invest in clinical excellence throughout the four-state region.”

The transition is not expected to disrupt patient care. Link here for more information on the transition.