Last month, the seven-hospital Wellmont announced it is exploring whether it should affiliate or merge with another organization. Poor 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 have put the system at risk financially.
Officials said Wellmont is still in the early stages of the transaction process, and no timeline has been set for when a decision will be made. Previously, executives said all potential partners must have 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.
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