FMOLHS’ bid to buy Mississippi health system falls apart

Franciscan Missionaries of Our Lady Health System, parent company of Our Lady of the Lake, has ended its bid to purchase Mississippi’s Singing River Health System. 

Despite months of negotiations, FMOLHS and the Jackson County Board of Supervisors were unable to reach an agreement. 

“Throughout the entire RFP process, the Jackson County Board of Supervisors and SRHS have been very engaging and clearly committed to delivering quality healthcare to the people of the Mississippi Gulf Coast,” Dr. Richard R. Vath, president and CEO of FMOLHS, says in a prepared statement. “At this unprecedented time of uncertainty in healthcare, we regret that both parties could not reach consensus. We wish the very best for Jackson County and SRHS in the future.”

The Jackson County board selected FMOLHS as its preferred buyer in late March, which surprised some observers because Singing River already had a relationship with Ochsner Health. Ken Taylor, the board’s president, says the board will continue to look for a partner to fulfill SRHS’s long-term objectives and ensure the continuous delivery of high-quality patient care.

Terms of the proposed deal were never disclosed. Raymond James had provided a report to the county in late 2022 that showed the business enterprise value of Singing River to be between $220 million and $300 million and the equity value to be between $158 million and $238 million, the Magnolia Tribune reports.

Singing River Health System includes hospitals in Pascagoula, Ocean Springs and Gulfport, along with 30 primary care medical clinics, community medical parks and specialty centers. 

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