The management services agreement is a two-year, nonbinding pact that allows St. Peter’s to step in and begin helping Ellis achieve financial sustainability.
Once approved by the New York health department, the agreement will allow the systems to “start working together to improve performance and quality in several operational areas throughout Ellis Medicine,” according to an email from St. Peter’s obtained by the Business Review.
“This is a very important next step in the process,” the email from St. Peter’s reads. “The MSA is a two-year, nonbinding agreement that does not commit either organization to the merger. … Throughout this process, Ellis Medicine will remain independent from SPHP.”
In late July, St. Peter’s and Ellis paused plans to merge because of the effect the pandemic had on Ellis’ finances. Ellis posted a $33 million loss for 2020.
Ellis and St. Peter’s signed a letter of intent to explore a combination in October 2020.
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