Becker's Hospital Review

14 CFO / FINANCE 7 hospital mergers called off in the past year By Ayla Ellison I n March, Dallas-based Baylor Scott & White Health and Houston-based Me- morial Hermann Health System called of their merger, which would have resulted in a 68-hospital system. at is one of several hospital mergers that, at some point in their lifetime, were called off in the past year. Seven hospital mergers called off since March 2018: 1. Community Hospital in Grand Junction, Colo., and Centura Health in Centennial, Colo., discontinued merger discussion in March, roughly four months aer signing a letter of intent to combine their organiza- tions. Although the organizations ended for- mal merger discussions, they remain open to exploring ways to partner in the future. 2. Iroquois Memorial Hospital in Watseka, Ill., and Riverside Healthcare in Kankakee, Ill., ended merger discussions in February. However, officials said they would continue to collaborate on ways to best serve patients in Iroquois County. 3. Baylor Scott & White Health and Memorial Hermann Health System decided to discon- tinue merger discussions in February, rough- ly four months aer signing a letter of intent to combine their organizations. Baylor Scott & White and Memorial Hermann did not cite a specific reason for ending merger talks. "Ul- timately, we have concluded that as strong, successful organizations, we are capable of achieving our visions for the future with- out merging at this time," the systems said in a joint statement. 4. Baltimore-based LifeBridge Health and Elkton, Md.-based Union Hospital of Cecil County ended merger negotiations in De- cember 2018. Uncertainty about Union Hos- pital's future revenue under Maryland's hos- pital reimbursement system was the primary reason merger talks ended. 5. Asheboro, N.C.-based Randolph Health and Greensboro, N.C.-based Cone Health ended their merger plans in May 2018. "is was a difficult decision, but one that we be- lieve to be in the best long-term interests of Cone Health," Cone Health CEO Terry Akin said in a press release issued May 31. "Aer much consideration, we found that com- bining our organizations would require that many current and future Cone Health priori- ties and projects would need to be scaled back or put on hold. Cone Health's overall strate- gic commitments and our current competi- tive environment do not give us the latitude to move forward with Randolph Health at the present time." 6. Rush, an academic health system in Chi- cago, and Evergreen Park, Ill.-based Littler Company of Mary Hospital and Health Care Centers canceled their merger plan in April 2018. e organizations mutually agreed to back out of the nonbinding agreement they entered into in October 2017. 7. Charlotte, N.C.-based Atrium Health and Chapel Hill, N.C.-based UNC Health Care sus- pended merger discussions in March 2018. "We have agreed that the best path forward for both organizations is to identify specific opportuni- ties to work together, as we have previously, to improve healthcare across the state and region," UNC Health Care said in a statement to Beck- er's Hospital Review on March 2, 2018. "ough we will not form a joint operating company, UNC Health Care and Atrium Health will continue to partner on important issues such as improving rural health care and expanding medical education." n Ascension buys Florida hospital, plans $47M investment By Ayla Ellison A rdent Health Services completed the sale of its interest in Bay Med- ical Sacred Heart in Panama City, Fla., to Ascension on March 14. Nashville, Tenn.-based Ardent and Sa- cred Heart Health System, part of St. Lou- is-based Ascension, jointly operated the 323-bed hospital. In November 2018, Ar- dent agreed to sell its interest in the hos- pital and its affiliated physician offices and clinics to Ascension. Ascension plans to invest $47 million in Bay Medical, according to WHJG. A portion of those funds will be used to repair damage caused by Hurricane Michael in October 2018. Ascension also plans to increase the number of private rooms at the hospital. n Kansas hospital closes: 5 things to know By Morgan Haefner H orton (Kan.) Community Hospital, the city's only healthcare pro- vider, closed March 12, according to The Topeka Capital-Journal. Five things to know: 1. The 25-bed critical access hospital closed after struggling to pay utili- ties, missing payroll since Feb. 15 and operating with insufficient supplies, according to local news station WIBW. 2. Richard Brown, MD, the hospital's chief of staff, told the Capital-Jour- nal that the hospital›s closure didn›t surprise staff. About 50 employees were affected by the closure. 3. Dr. Brown said Horton Community's staff had been working with the Kansas Attorney General's Office and the Kansas Department of Health and Environment to find ways to stay open. 4. Attorney general spokesperson C.J. Grover told the Capital-Journal the office is investigating the closure. 5. In February, healthcare management company iHealthcare took con- trol of the hospital from Kansas City, Mo.-based EmpowerHMS. Empow- erHMS operates hospitals in Tennessee and Oklahoma, some of which have also struggled financially. n

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