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New York hospital to split with Ascension after 18 years

St. Mary's Healthcare in Amsterdam, N.Y., is slated to become an independent hospital after 18 years as a member of St. Louis-based Ascension, according to The Daily Gazette.

There are several advantages to being a member of a large health system like Ascension, but being an independent hospital with a local board of directors is the best option for St. Mary's Healthcare, CEO Vic Giulianelli told The Daily Gazette. He said the hospital could save millions from the split.

"When you belong to a system, there are system expenses, and upstate New York hospitals, like St. Mary's, are among the least expensive in the country and that gets back to where we reside and to where we deliver care, and the cost here has to be lower, because the [Medicare and Medicaid] reimbursements here are not stellar," Mr. Giulianelli told The Daily Gazette.

St. Mary's joined Ascension in 2002. In 2015, the two organizations began exploring opportunities for St. Mary's "to pursue a future apart from Ascension," according to a March 25 news release.

"We believe this is the best approach for the individuals and communities St. Mary's serves as well as for its dedicated and compassionate associates, providers and volunteers," Ascension Executive Vice President and COO Craig Cordola said.

More articles on healthcare industry transactions:

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6 health systems compete for bigger footprint in North Carolina
619-bed California hospital to join Cedars-Sinai Health System

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