Friday, December 18, 2009

Merger feasibility

Several weeks ago, I wrote to you about discussions between Community General Hospital and Crouse Hospital. I’d like to update you on these discussions.

The boards of directors of both hospitals have approved a joint memorandum of understanding (MOU) authorizing the hospitals to move forward in their discussions regarding a closer affiliation. Over the last several months, we have had preliminary discussions about working together, with the common goal to create a patient-centered, cost-efficient delivery system.

The MOU outlines a process the two hospitals will follow to evaluate the feasibility of a closer relationship. As part of this process, the hospitals have worked together to select health care consultants to help conduct a feasibility study. This study will include a detailed analysis of the two facilities, as well as a financial, operational, programmatic and regulatory review to identify opportunities for enhanced patient care and increased efficiencies. The feasibility study will begin in early January and be completed during the first half of 2010. The firms selected include Alvarez and Marsal Inc. as feasibility study consultant, and Nixon Peabody LLP as legal counsel. Both firms come highly recommended and have extensive experience within the health care environment.

As previously reported, our discussions continue to be exploratory in nature as we continue with normal business operations. As the consultants begin their work, members of the Community General family may be asked for information to assist them in their research, and I encourage participation. I will continue to keep you informed as discussions continue throughout the coming weeks and months.

Most importantly, I appreciate the dedicated service and commitment to Community General Hospital and to the patient care by all members of the Community General family. My best wishes for a safe, happy, and healthy holiday season and prosperous new year.

1 comment:

Mitch said...

As a health care consultant in the area, and someone who used to work at Crouse (where my wife works now), I'm really interested in seeing how this whole thing progresses. I remember how things went the first time around, and I could be wrong but it seems like there wasn't full disclosure up front, which might have led to the ending of the proposed relationship at that time. I only hope that it works out this time in some fashion, and that it helps to save costs in the end.