Under a certificate of need authorized by DHHS Commissioner Mary Mayhew, LCH may merge the two hospitals only if it opens and operates an urgent care center for at least three years. However, if the health system — a subsidiary of Portland, Maine-based Maine Health — can prove there isn’t enough demand to justify the costs, the center could close after only 18 months. LCH is considering its response to the urgent care center requirement, according to the report.
LCH was formed in 2007 to merge the two hospitals under one management team and one board of trustees, according to the report. Last July, CMS granted preliminary approval for LCH to merge St. Andrews and Miles and run both facilities under a single critical access hospital license, while converting St. Andrews into an urgent care center. LCH closed the emergency room and eliminated other services at St. Andrews last October because of financial issues and low volumes. The ER has been converted to an urgent care center but is only open 12 hours per day, according to the report.
More Articles on Hospital Mergers:
CHI Looks to Acquire Sylvania Franciscan Health
PwC: Hospital Deal Volume Down, Value Up in Q1
8 Recent Hospital Transactions and Partnerships
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.
