The following developments, related to hospital and health system transactions, occurred within the past week.
1. Chicago’s Holy Cross Hospital, Vanguard Health Systems Planned Merger Called Off
The potential merger between Nashville, Tenn.-based Vanguard Health Systems and Chicago-based Holy Cross Hospital was canceled. Holy Cross CEO Wayne Lerner said the economy and healthcare environment were the big reasons the deal fell through, according to news reports.
2. Dispute Between Nurses Union, Steward Could Hold Up Sale of Quincy Medical Center
A dispute between the Massachusetts Nurses Association and Boston-based Steward Health Care System might hold up Steward’s $35 million acquisition of Quincy (Mass.) Medical Center. The nurses’ union claims Steward reneged on an initial pension agreement with nurses at Boston’s Caritas Christi Health Care, which Steward purchased last year. At a public hearing held by the Massachusetts Attorney General regarding the Quincy sale, MNA representatives called for the delay of Steward’s purchase of Quincy.
3. Florida Systems to Revise Merger Deal After Tax Law Strikes Down Proposed Plan
A merger between Orlando, Fla.-based Health Central and Orlando Health ran into a problem, as system executives discovered an outright purchase by Orlando Health might not be possible. Richard Irwin, CEO of Health Central, said the system is now examining other avenues to complete the transaction. Both sides are still committed to moving forward with a deal.
4. Florida’s Bay Medical Center Continues Affiliation Hunt Amidst Budget Cuts
Bay Medical Center in Panama City, Fla., is dealing with funding cuts and $30 million per year in uncompensated services, and it is continuing to explore an affiliation with a larger health system to help absorb the financial strain. It has not stated which healthcare systems it is pursuing for the partnership.
5. FTC Approves Merger Review of Georgia’s Piedmont Healthcare, Henry Medical Center
The Federal Trade Commission approved the partnership between Stockbridge, Ga.-based Henry Medical Center and Atlanta-based Piedmont Healthcare. HMC and Piedmont are expected to finalize the merger terms in the next three to four months and are projected to go live with the new entity by Jan. 2012.
6. Michigan’s Mercy Health Partners, Saint Mary’s Health Care to Merge
Saint Mary’s Health Care in Grand Rapids, Mich., and Mercy Health Partners in Muskegon, Mich., are set to merge into a new organization called Mercy Health. The two systems are owned by Trinity Health, a Catholic system based in Novi, Mich. In the next 12-24 months, the new Mercy Health brand will be unrolled to all of the West Michigan Trinity institutions. The new entity will include approximately 900 hospital beds in four hospital locations and two physician networks.
7. Oregon’s Ashland Community Hospital Weighs Partnership Options
Ashland (Ore.) Community Hospital is exploring partnership options with other independent hospitals or a hospital chain. The hospital is still in the early stages of pursuing a partnership, as no attempts have been made to contact other health organizations and there are currently no candidates in the running.
8. Rhode Island’s Westerly Hospital “Aggressively” Seeks Partnership to Survive
Westerly (R.I.) Hospital is aggressively seeking a partnership with another institution, as it may be unable to sustain itself without. Ideally, the board envisions a relationship where Westerly would remain a community hospital.
9. University of Colorado Hospital Ready to Discuss Joint Venture With Memorial Health
The University of Colorado Hospital is ready to jumpstart discussions of a possible joint venture with Memorial Health System in Colorado Springs. Bruce Schroffel, president and CEO of UCH, is currently in the process of negotiating a similar joint operating arrangement with Poudre Valley Health System in Fort Collins, Colo. Mr. Schroffel distinguished the proposed deal from a merger, since Memorial would retain its assets.
10. Washington’s Valley General Hospital Selects Capella Healthcare for Joint Venture
A proposed joint venture between Valley General Hospital in Monroe, Wash., and Capella Healthcare bumped other local hospital contenders out of the running. Franklin, Tenn.-based Capella is promising Valley $30 million in capital along with a 40-year business agreement. Under the deal, Capella would lease the hospital in a joint venture with the hospital district, which would then buy a stake in the new organization.
Related Articles on Healthcare Transactions:
6 Legal Topics to Consider Before a Hospital Completes a Merger
7 Recent Hospital and Health System Transactions
To Sell or Not to Sell: 3 Considerations for Leaders of Struggling Hospitals
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