Tenet, Community Health Systems, and Mercy Health have individually finalized separate deals to build, operate, and merge healthcare organizations from Pennsylvania to Florida.
Tenet Healthcare Corp. has won the latest round in a twisting eight-year battle to build a hospital in burgeoning Fort Mill, SC.
A South Carolina Administration Law Court overturned an earlier state ruling and awarded a certificate of need to Tenet-owned Piedmont Medical Center, which plans to build a 100-bed, $120 million Fort Mills Medical Center.
"We celebrate today with the community of Fort Mill as they are one step closer to getting the high-quality hospital that they have deserved for years," Bill Masterton, CEO of Piedmont Medical Center, said in prepared remarks. "Fort Mill Medical Center will deliver trusted healthcare services in the heart of town as we extend the quality programs that residents have come to expect from Piedmont Medical Center."
The ruling released last week is the latest wrinkle in a case that dates back to 2006. Piedmont had originally been awarded the CON by the South Carolina Department of Health and Environmental Control. Carolinas HealthCare System successfully appealed the ruling in September, 2011. Piedmont appealed that ruling and the case was heard in April 2013 by Administrative Law Judge S. Phillip Lenski, who overturned the DHEC ruling in his decision last week.
"This court concludes that the establishment of the (Fort Mills Medical Center) will best serve the public needs by reducing the outmigration of York County residents to North Carolina hospitals and, in so doing, will strengthen the existing healthcare system in York County that consists largely of Piedmont Medical Center and independent physicians on the Piedmont medical staff," Lenksi wrote.
"Approval of Piedmont's application will help stem outmigration, while approval of CHS's will escalate it, especially for specialty services. Furthermore, CHS's proposed hospital site presents traffic and safety concerns. For all these reasons, FMMC will better serve public needs than (Carolinas Medical Center – Fort Mills)."
Lenski also wrote that granting the CON to CHS "would have the effect of causing the erosion of quality of care at Piedmont and among specialists practicing there as a result of the diminution in the volume of patients and the degradation of the payer mix of the patients who would continue to be seen at Piedmont.
Consequently, there would be no hospital in York County providing many of the high quality and tertiary services that Piedmont has added. Alternatively, the establishment of FMMC will ensure that high quality services continue to be added and provided within York County."
It is not clear if CHS will appeal the ruling. Calls to the health system's media relations office were not returned.
Once built, Tenet said, FMMC will offer an array of specialized services, including a 24-hour emergency department, comprehensive women's health services, advanced cardiac services, and an intensive care unit.
CHS Finalizes Hospital Deals in FL, PA
Community Health Systems, Inc. says it is finalizing new operations agreements with hospitals in Pennsylvania and Florida.
In Pennsylvania, CHS has completed "the acquisition of substantially all of the assets of Sharon Regional Medical Center. The acquisition includes the 251-bed Sharon Regional Medical Center, outpatient centers and affiliated physician practices. Pennsylvania is CHS's second largest state as measured by number of affiliated hospitals, and in close proximity to ValleyCare Health System of Ohio, an affiliated health system that includes two acute care facilities and a rehabilitation hospital.
CHS has expanded its presence in Florida with the finalization a 40-year prepaid lease on Munroe Regional Medical Center, a 421-bed hospital in Ocala. The deal also creates a clinical affiliation between Munroe Regional and UF Health Shands. CHS affiliates now own or operate 26 hospitals in Florida.
Mercy Health Transfers Hot Springs (AR) to CHI
Mercy Health has transferred ownership of Mercy Hot (AR) Springs hospital and physician clinic to St. Vincent Health System in Little Rock, an affiliate of Catholic Health Initiatives. Mercy Hot Springs will be operated as part of a regional network with SVHS and the new name is St. Vincent Hot Springs.
Financial terms of the transfer were not disclosed.
"Our agreement with CHI provides assurance that Catholic health care has a strong, sustainable future in Hot Springs," Mercy President and CEO Lynn Britton said in prepared remarks. "The affiliation with SVHS provides the opportunity to strengthen health services locally as well as across the entire region, and enables our co-workers and physicians to continue to do what they love – provide exceptional care and service to their community in a faith-based environment."
Mercy Hospital Hot Springs is a 282-bed acute-care hospital with a Level 2 Trauma Center designation, a 90-physician clinic organization and a range of medical services
Medical staff privileges of the physicians at Mercy Hot Springs are not expected to be affected by the transfer. Physicians and staff employed by Mercy Hot Springs as of April 1 will continue their employment with the hospital.
SVHS also intends to retain the core healthcare services and charity care currently provided by Mercy in the Hot Springs community, which will be overseen by a local board of community and physician leaders, the hospital systems said in a joint media release.
Mercy will still have a presence in Hot Springs through its sponsorship of the Cooper Anthony Mercy Child Advocacy Center.
Thomas Fitz was named interim president of St. Vincent Hot Springs. He has previously worked with CHI in Kansas and Morrilton in supporting sponsorship transfers and serving as an interim leader.
John Commins is a content specialist and online news editor for HealthLeaders, a Simplify Compliance brand.