From an Oregon health system merger getting emergency approval to WVU Health System signing a definitive agreement to acquire a Pennsylvania hospital, herea are four hospital M&A moves Becker’s reported during the week of Aug. 3:
1. Morgantown, W.Va.-based West Virginia University Health System signed a definitive agreement Aug. 6 with Fulton County Medical Center in McConnellsburg, Pa. for it to join the health system.
Under the agreement, WVU Health System has committed up to $17 million to modernize FCMC over the next seven years, which includes installing Epic’s EHR platform. The 21-bed critical access hospital comprises more than 415 employees, an emergency department, cardiology, rehabilitation, a laboratory, diagnostic imaging services, home health, a community wellness center and a 67-bed nursing home.
2. Buffalo, N.Y.-based Kaleida Health became the sole member and passive parent of Dunkirk, N.Y.-based Brooks-TLC Hospital and Springville, N.Y.-based Bertrand Chaffee Hospital, aligning the two facilities with Kaleida’s system.
Under the passive parent model, the two hospitals will maintain control and oversight of their daily finances, operations and services. Kaleida will provide administrative and financial guidance, help guide policy and strategic direction, and support key service lines.
3. Little Rock-based University of Arkansas for Medical Sciences finalized an affiliation with Pine Bluff, Ark.-based Jefferson Regional.
UAMS and Jefferson Regional finalized a membership substitution agreement that makes the University of Arkansas Board of Trustees the corporate member of Jefferson Regional’s parent corporation, Jefferson Hospital Association. The affiliation is intended to expand access to specialized clinical resources, advanced technologies and shared operational efficiencies across southeast Arkansas.
4. The Oregon Health Authority granted Salem (Ore.) Health Hospitals & Clinics and Stayton, Ore.-based Santiam Memorial Hospital an emergency exemption that allows their proposed affiliation to proceed without a full state healthcare market review.
OHA determined the transaction is urgently needed to protect patients and preserve Santiam’s solvency. Without immediate relief, Santiam is projected to become insolvent during the third quarter. State regulators found that delaying the transaction could force Santiam to make immediate staffing cuts, reduce wages and terminate healthcare services to preserve cash for day-to-day operations.
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