The opposition to the possible merger between Jennie Stuart Health and Deaconess Hospital in Evansville, Indiana has taken a new step, as the Save Jennie Stuart movement has filed a suit in Christian Circuit Court.
The suit was filed on Friday and is seeking an injunction to pause the transaction. A news release from Save Jennie Stuart states that the decision to file the suit came after investigation into the value of Jennie Stuart Hospital, which determined to the group that Jennie Stuart’s fair market value is substantial.
They go on to say that the Jennie Stuart Board of Trustees has “breached its fiduciary duties to the hospital by agreeing to essentially transfer the hospital and all of its assets to Deaconess with insufficient consideration coming back to the community.
The hope is the suit will allow for mediation between the group and the Jennie Stuart Board.
As previously reported, the Save Jennie Stuart non-profit corporation was created after Jennie Stuart Health and Deaconess Health entered a letter of intent to join the two entities. The Board of Trustees has said that the merger would be a benefit to Jennie Stuart, with Deaconess committing $95 million to Jennie Stuart, $5 million to the Jennie Stuart Health Foundation, fully support the cost of IT enhancements, including the integration into the Epic electronic health system. That’s along with saying that all Jennie Stuart staff and physicians who are in good standing would be retained upon completion of the merger.
The Save Jennie Stuart group has frequently argued that the merger would relinquish all local control of the hospital and they want to consider all other options before merging with any entity.