MU health care, Nueterra purchase Callaway Community Hospital

The University of Missouri (MU) Health Care and Nueterra announced a joint purchase of Callaway Community Hospital in Fulton.

According to a press release, the two organizations partnered to purchase the hospital in an effort to modernize the hospital and improve patient care.

Nueterra, according to the release, is the largest privately-held organization in the country that specializes in developing equity partnerships with health systems, governments, hospitals and physicians.

The release stated that the two organizations want to "re-energize the hospital and provide capital improvements; ensuring central Missourians have access to quality and affordable health care."

The hospital's operations will be overseen by a board of Nueterra and MU Health Care representatives. Nueterra will operate the hospital and will own about 65 percent of it. MU Health Care will own the other 35 percent and is paying $1.15 million in cash from operating reserves for its share.

The University of Missouri will also provide debt guarantees of about $2.75 million to support funds for capital improvements and working capital.

MU and Nueterra plan to renovate the 37-bed acute-care hospital through new technology and service lines, according to the release. With this partnership, the hospital will still provide acute care and outpatient services with local expertise.

The MU Department of Family and Community Medicine has been in the Callaway County community for more than 40 years. It has provided primary care to Callaway County patients at the University Physicians-Callaway Physicians clinic and at the Callaway Community Hospital.

Mitch Wasden, chief executive officer and chief operating officer of MU Health Care, said in a release that collaboration is important in the health care system.

"Health care today requires collaboration and MU Health Care is always exploring ways to advance the health of our community and the state of Missouri," Wasden said in the press release.

Nueterra officials first approached MU Health Care about a partnership in 2013. In June 2014, the University of Missouri System Board of Curators approved MU Health Care to purchase the hospital with Nueterra. Agreements were executed Dec. 3.