The two Maryland healthcare providers announced plans to merge Monday morning.
McCready Health signed a definitive agreement to join Peninsula Regional Health System (PRHS) Monday morning, with final regulatory approval of the deal set for this fall.
The two Maryland-based healthcare organizations first discussed an affiliation in early 2018, when McCready executives approached PRHS leadership.
Among the reasons cited for the merger was providing uninterrupted healthcare services in Crisfield and Somerset Counties in Maryland and the overall decline in hospital usage coupled with facility deterioration.
In a press statement, McCready CEO Kathleen Harrison, MBA, FACHE(R), said that the organization has long focused on ensuring quality care access for the Crisfield and Somerset Counties.
“McCready is also a major employer here, and we want to continue as an economic driver for the county," Harrison said. "By becoming part of PRHS, we can assure both those objectives for many years to come.”
As part of the deal, McCready will transition its current Crisfield location into a freestanding medical facility (FMF) once PRHS assumes ownership on November 1.
Within two years, PRHS plans on constructing a new facility east of Crisfield that will be known as the McCready Health Pavilion, which PRHS CEO Steve Leonard, Ph.D., MBA, FACHE, said will build upon services offered at other local health pavilions.
"This is complete and comprehensive healthcare, which best allows us to continue the McCready mission and tradition of providing effective, efficient and exceptional care in Somerset County," Leonard said.
As part of the agreement, PRHS' board of directors will oversee the transition for McCready and Leonard will stay on as CEO.
Jack O'Brien is the finance editor at HealthLeaders, a Simplify Compliance brand.