Sponsored by VMG Health | info@vmghealth.com | 214.369.4888

Wellmont Health System Mulls Affiliation Options

Wellmont Health System, a seven-hospital network based in Kingsport, Tenn., is exploring whether it should affiliate or merge with another organization.

Wellmont Board Chairman Buddy Scott said in a news release the health system "must act now to ensure Wellmont evolves with the rapidly changing healthcare industry." Stagnant Medicare reimbursement rates and high volumes of Medicaid and uninsured patients have forced the system to consider its "strategic options," according to officials. In addition, Virginia's and Tennessee's decisions to not expand Medicaid under the Patient Protection and Affordable Care Act put the system at risk financially.

Officials emphasized the announcement is only the beginning of a process to determine if a transaction is in the system's best interests. Key elements for a potential partner include a strong commitment to Wellmont's mission, financial strength, long-term vision, focus on community benefit, strong health IT systems, a robust physician network, the ability to recruit physicians and efficient supply and purchasing powers.

This past September, Wellmont closed its Lee Regional Medical Center, a 70-bed hospital in Pennington Gap, Va., in part because of Medicare reimbursement cuts under the PPACA.

Wellmont officials did not give a timeframe for how long it would evaluate its options.

More Articles on Hospital Transactions:
Catholic Health Initiatives Builds New Alliance Between St. Luke's, Baylor
Baylor Scott & White Affiliates With For-Profit RegionalCare Hospital
Conemaugh Health System Looks to M&A Market

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Whitepapers

Featured Webinars