Tennessee health system, Arkansas hospital plan to merge

Two hospital organizations in the South are planning a merger.

Baptist Memorial Health Care, a non-profit system based in Memphis, and Arkansas Methodist Medical Center have signed a letter of intent to merge. The medical center has 129 beds and a staff of 500 and is based in Paragould, a small city of about 30,000 residents in northeastern Arkansas. The medical center’s service area also includes a swath of southeast Missouri.

One of the nation’s larger nonprofit systems, Baptist Memorial Health Care operates 24 hospitals in Tennessee, Mississippi and northeastern Arkansas. Baptist Memorial says it had a net operating revenue of $4.4 billion in the 2024 fiscal year.

The organizations say they’re in the early stages of the planning but hope to complete the transaction in early 2026.

Jason Little, president and CEO of Baptist Memorial Health Care, said he’s excited about the merger with Arkansas Methodist.

"Arkansas Methodist Medical Center has similar values to Baptist Memorial Health Care and an excellent reputation in the community,” Little said in a statement. “By combining our organizations, we can expand the reach of sustainable and quality health care in the region while creating a strong organization with the size, scale, technology and intellectual capital to expand access to care while weathering future challenges."

Brad Bloemer, CEO of Arkansas Methodist Medical Center, cited Baptist Memorial’s success in a variety of markets.

"With Baptist's strong market presence and long track record of delivering premier health care in both small, rural communities and large, metropolitan areas, they're the perfect partner to help us grow and improve,” Bloemer said in a statement. “Together, we can expand access to more health care services, bring in more specialists and specialty services, modernize our facility, and ensure these health care services stay close to home."

Arkansas Methodist Medical Center, which has been serving its community for 75 years, operates inpatient rehabilitation services and a retirement community.

Baptist Memorial has expanded in recent years. Last year, Baptist Memorial completed its acquisition of Anderson Regional Health System. Anderson, based in Meridian, Mississippi, serves the surrounding region, including some of western Alabama.

In 2017, Baptist Memorial also acquired the Mississippi Baptist Health System, based in Jackson, Mississippi.

Baptist Memorial Health Care was given a stable outlook by Fitch Ratings in June 2024. Fitch noted that Baptist Memorial is the largest healthcare provider in Mississippi, as the system operates 12 hospitals in the state. Baptist Memorial also enjoys a strong presence in the Memphis area. The health system has a favorable mix of payers, but its service area is generally seeing little population growth.

The planned merger of Baptist Memorial and Arkansas Methodists comes during a slow period of merger activity. In the first quarter of 2025, only five hospital mergers were announced, according to Kaufman Hall.

Analysts say it’s possible hospitals may be more cautious about pursuing mergers or acquisitions given the uncertain economic climate.

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