Cheshire Medical Center/Dartmouth-Hitchcock Keene (N.H.) and Dartmouth-Hitchcock have entered into negotiations to explore a "closer affiliation" from their current agreement.
Cheshire Medical Center and Dartmouth-Hitchcock have been affiliated since 1998 under a joint operating agreement. Executives did not elaborate if a "closer affiliation" meant a merger or full acquisition, although the news release indicated that these discussions are the result of a year-long study to see if Cheshire Medical Center can be "part of a sustainable health system."
The two organizations are looking to integrate further to help deal with the effects of reduced reimbursements, increased Medicaid enhancement tax payments, declining inpatient volumes and population health reforms.
Negotiations on a new affiliation are expected to end on or before Jan. 31, 2014. Any transaction would have to be reviewed and approved by state officials, including Attorney General Joseph Foster.
This past January, Cheshire Medical Center officials cut 34 jobs from the 169-bed hospital. That included 13 layoffs.
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