Healthcare Business News

Ohio hospital buys 20-bed doc-owned facility

By Ashok Selvam
Posted: December 28, 2012 - 2:45 pm ET

The parent of not-for-profit Licking Memorial Hospital, Newark, Ohio, has completed its $26 million deal to buy 20-bed Medical Center of Newark, according to a news release.

When MCN reopens Jan. 7, the former physician-owned facility will initially offer only outpatient clinic services, as regulatory approval would be needed in order to provide other services. That process could take months, Licking Memorial Health Systems officials said in the release (PDF). Further plans for the facilities will be announced at a later date. Licking Memorial Hospital is a 199-bed facility located less than 2 miles from MCN.

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MCN started offering inpatient services after a $19.5 million expansion in 2006. The facility opened in 1998 and initially offered only outpatient care.

The purchase price consists of $7 million of assets and $19 million in real estate costs. Staff interviews have already been conducted, as 110 of 160 MCN staffers showed interest in being employed at the facility after Licking Memorial takes over. Licking Memorial officials said 50% to 60% of applicants will be offered jobs.

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