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Mountain States, Wellmont merger confirmed

Johnson City, Tenn.-based Mountain States Health Alliance CEO Alan Levine has officially confirmed a planned merger agreement with Kingsport, Tenn.-based Wellmont Health System, according to a Johnson City Press report.

"While an agreement has not yet been signed, I will confirm for you that, for the past year, Wellmont has been engaged in a process of evaluating various options for their system…," Mr. Levine wrote earlier this week in an email to employees. "As our board evaluated these external challenges, and our own options, we came to the unanimous conclusion that the solutions to these problems were local. In fact, the solution was right before us. That solution, we believe, is for Wellmont and Mountain States to join together in the formation of a new system focused on not only surviving as a health delivery system, but to embrace an even bigger mission of measurably improving the overall health of our region."

In the email, Mr. Levine said the transaction will not simply be a merger of assets, but rather the creation of a health improvement organization "designed… to be among the best health systems in the nation, with a sincere focus on improving the overall health of our region — and not just providing great hospital care."

Additionally, he wrote, the merger will involve a partnership with a major academic institution, and involve enhancement in access for mental health and addiction recovery services.

Confirmation of the planned merger came after WCYB reported that Mountain States and Wellmont were expected to announce a merger agreement Thursday. 

 

More articles on hospital transactions and valuation issues:

Robinson Health System to join University Hospitals

IU Health La Porte in exclusive partnership talks with CHS subsidiary

Healthcare M&A activity posts record-breaking totals in 2014

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