The Baystate Health system, Springfield, Mass., intends to acquire a 74-bed hospital in Palmer, Mass., from UMass Memorial Health Care.
The two organizations announced Dec. 18 they had signed a letter of intent to propose transfer of Wing Memorial Hospital and Medical Centers' ownership to Baystate Health. The move comes just months after Baystate and UMass Memorial signed a nonbinding letter of intent to explore collaborations between the two health systems.
A Baystate spokesman said there are no financial terms to disclose at this time.
UMass, which operates five hospitals in Massachusetts, including Wing Memorial, has struggled financially in recent years. The Worcester, Mass.-based system said in September of last year that it planned to cut 140 full-time positions to help reduce a $50 million financial gap because of declining patient volumes and reimbursement. About 150 full-time positions had already been eliminated at that time. It has also divested its home health and hospice and lab testing businesses.
Baystate currently owns three hospitals in Massachusetts, including Baystate Medical Center, its 659-bed flagship hospital. It recently announced that Dr. Mark Keroack would take over as president and CEO in July, following the retirement of Mark Tolosky. Follow Jaimy Lee on Twitter: @MHjlee