Baptist Health plans to sell Fort Smith area clinics

Little Rock-based Baptist Health on Tuesday (June 30) announced that they have signed a letter of intent with Springdale-based Community Clinic to operate Baptist clinics in Alma, Fort Smith, Greenwood and Van Buren. Terms of the deal were not disclosed, and no date was provided for management transfer.

News of the deal was confirmed by Community Clinic. Baptist Health did not respond to emails and phone calls sent by Talk Business & Politics.

Tuesday’s announcement by Baptist that it is exiting certain medical operations in the Fort Smith area is not a surprise. The hospital system has announced 260 hospital staff, nursing and physician cuts since late March. Services cut or reduced include labor and delivery operation, obstetric services, clinic admin, pharmacy, radiology, case coordination, facilities maintenance, and sterile processing.

Baptist Health said with its April announcement that it has lost $127 million since acquiring the Fort Smith hospital in 2018. Baptist officials have asserted that the hospital will not fully close, saying they plan to spend $20 million at the Fort Smith location “over the next few years,” and the investment is part of a “transition of its Fort Smith campus.”

Baptist Health and Community Clinic said the deal is subject to regulatory review, HRSA (Health Resources and Services Administration) approval, and execution of a definitive agreement. Community Clinic, a nonprofit group, has more than 75,000 patients connected at more than 30 locations in Arkansas and northeast Oklahoma.

“We know announcements like this raise questions, and we want you to hear directly from us about why we are pursuing this opportunity,” Baptist said in an internal note obtained by Talk Business & Politics. “Over the past several months, we have carefully evaluated how to best ensure long-term access to primary care in the River Valley while continuing to meet the evolving healthcare needs of the communities we serve.

“Community Clinic has a 35-year history of delivering comprehensive, community-based primary care through an integrated model that includes medical, behavioral health, dental, pharmacy and other support services. We believe this organization is well-positioned to build on the outstanding foundation established by our providers and staff.”

In a statement, Community Clinic officials said they plan to meet with doctors and medical staff “to discuss opportunities as part of the transition,” and will maintain “continuity of care throughout the transition while expanding access to comprehensive primary care for the communities in the River Valley.”

“For us, this is about more than expanding our footprint. We believe every community deserves access to great primary care,” Judd Semingson, Community Clinic president and CEO, said in the statement. “You don’t become part of a community by putting your name on a building. You become part of a community by listening first, showing up consistently, and earning trust over time. That’s the commitment we’re making to the River Valley.”

Fort Smith Director Christina Catsavis, who has expressed concern about service cuts by Baptist Health in Fort Smith and has called for a statewide requirement to provide advance community notice of healthcare cuts, said she is glad to see a care provider step up and hopes the process will be transparent.

“I welcome the proposed acquisition of Baptist Health primary care clinics by Community Clinic,” Catsavis said in a statement sent to Talk Business & Politics. “Fort Smith and the River Valley are absolutely worth investing in, and primary care is the foundation of healthy families and a thriving community. I appreciate the direct communication to providers and staff, and as this Letter of Intent moves through the regulatory process, I encourage full transparency on how this will protect and strengthen access, provider continuity, and costs for the patients who rely on these clinics every day.”