M&A Roundup: Cincinnati Children's Signs Affiliation with TN Hospital

As 2012 winds down, healthcare consolidation continues.

Cincinnati Children's Hospital Medical Center has signed an agreement to provide children at Niswonger Children's Hospital, a Mountain States Health Alliance affiliate in Johnson City, TN access to specialized services.

"This affiliation will not only help us improve the care we can offer at Niswonger Children's Hospital, but it will also allow us to keep more children close to home for their care," Steven Godbold, MSHA vice president and CEO of Niswonger Children's Hospital, said in a media release. "We're excited to be able to tap into the clinical expertise of such a world-renowned organization to benefit children and families right here at home."

Under the agreement, Cincinnati Children's will:

• Create and manage an onsite hospitalist program that will collaborate with the faculty at East Tennessee State University's James H. Quillen College of Medicine.  The program will focus on quality improvement, standardization of best practices, patient safety, and driving down costs.
• Provide electronic interpretation of electroencephalograms (Tele-EEGs) by pediatric neurophysiologists to diagnose epilepsy and other neurological disorders.

"We are looking forward to working with our colleagues at Niswonger Children's to enhance existing health care capabilities and address specific unmet needs for patients and families in the region," said Arnold W. Strauss, MD, director of the Cincinnati Children's Research Foundation.

Niswonger operates 69 licensed beds, including 39 beds for neonatal intensive care. It is the region's only state-designated perinatal center, and serves more than 200,000 children in 29 counties in four states.

HCA Buys Thousand Oaks Surgical Hospital
Thousand Oaks Surgical Hospital has been purchased by Hospital Corporation of America (HCA), owner of Los Robles Hospital and Medical Center. The sale of TOSH by a group of area investor-physicians and Cirrus Health was finalized on Nov. 30. Terms were not disclosed

 "Adding the hospitality-inspired patient care and award winning clinical attributes of TOSH to the highly specialized acute care medical setting at Los Robles Hospital brings together complementary healthcare services that increase our ability to care for the unique needs of patients," Greg Angle, president/CEO of Los Robles Hospital & Medical Center said in a media release.

"Combining the strengths of TOSH and Los Robles Hospital & Medical Center allows us to offer our community another healthcare dimension within the context of a full service, acute care hospital. It is a win-win for the community. We're able to offer the community additional care choices through the services of both hospitals," Angle said.

Los Robles Hospital & Medical Center is a licensed 344-bed acute care hospital that serves Ventura County, the Greater Conejo Valley and its surrounding communities. The hospital is fully accredited by The Joint Commission and is the only hospital in Eastern Ventura County designated as a Level II Trauma Center.

Vatican OKs Holy Cross Acquisition by Mt. Sinai
Holy Cross Hospital in Chicago and Sinai Health System announced that they are moving forward with their plans to make Holy Cross a member of the Sinai Health System. As required for the partnership to advance, the Vatican granted the request for the transfer of property based upon the recommendation of Francis Cardinal George, the Archbishop of Chicago.

As a member of the Sinai Health System, Holy Cross will remain a Catholic hospital and will fully comply with the U.S. Conference of Catholic Bishops Ethics and Religious Directives for Catholic Healthcare. The Sisters of Casimir will remain the religious sponsors of the hospital, Sinai and Holy Cross said in a joining statement.

The Illinois Health Facilities and Services Review Board will meet today to discuss the proposed merger. Hospital officials said they believe the state will approve the deal, which should be completed by the end of December.

UMMS Finalizes Deal to Acquire CHI's St. Joseph Medical Center
The University of Maryland Medical System and Catholic Health Initiatives on Dec. 1 finalized an asset purchase agreement for the 263-bed St. Joseph Medical Center in Towson. The hospital will be a subsidiary of UMMS.

"We are looking forward to what the University of Maryland St. Joseph Medical Center can bring to the community and to partnering with the physicians and staff," says Robert A. Chrencik, president/CEO of UMMS, a 12-hospital health system.

SJMC's current employees will become employees of either the new organization or UMMS.

"As healthcare reform continues to evolve, the SJMC board and CHI recognized their obligation to find innovative approaches to meet the changing needs of the communities they serve while remaining true to SJMC's Catholic identity," said Beth O'Brien, CHI senior vice president and group executive officer.

UMMS will not assume any SJMC liabilities arising from events occurring prior to Dec. 1, 2012. These liabilities will remain with SJMC and CHI.