The organization that sought to acquire Lutheran Health Network in Fort Wayne for $2.4 billion is ending its effort. The 10 physicians who formed Fort Wayne Physicians LLC say they have dissolved the organization and will no longer seek the acquisition from Lutheran’s parent, Tennessee-based Community Health Systems Inc. (NYSE: CYH).
Last month, Community released a statement saying the offer undervalued Lutheran by at least $1 billion. In a joint statement released Thursday, Fort Wayne Physicians and Community Health Systems say they have "agreed to work together in support of the care and wellbeing of their patients and Lutheran Health Network’s long-term success."
"Lutheran Health Network has a history of inspiring tremendous passion from its employees, medical staff and the Fort Wayne community because of its longstanding record of providing quality healthcare for patients," the statement said. "The former members of Fort Wayne Physicians, LLC and the management of Community Health Systems recognize the importance of continuing that commitment into the future."
The statement adds Lutheran Health Network has agreed to a "substantial capital commitment," including wage increases for many employees across the network. Last month, Lutheran announced a $500 million investment to upgrade health services and hospital facilities.