Cabell Huntington (W.Va.) Hospital has initiated talks to acquire its cross-town competitor, St. Mary's Medical Center.
The not-for-profit hospitals are still operating independently, as executives are in the “initial steps of a process” that they hope will merge
the two entities, according to a joint statement.
“We are extremely excited about the potential of a close working relationship with St. Mary's Medical Center as we see this as critical to delivering the highest quality care in the most cost effective and efficient manner,” Cabell Huntington Hospital CEO Brent Marsteller
said in a release.
The Roman Catholic-based Pallottine Missionary Sisters also said they would end their 90-year sponsorship of St. Mary's Medical Center.
The 303-bed Cabell Huntington Hospital and 375-bed St. Mary’s Medical Center are the only two acute-care facilities in Huntington, which sits near the Ohio border and is West Virginia’s second-largest city with about 49,000 people.
They are also two of the largest private employers in the state. Each hospital employs more than 2,500 people. The hospitals did not say if jobs would be shed in a deal.
In its fiscal 2013 (PDF)
, which ended last September, Cabell Huntington recorded a $13.5 million operating surplus and a $32.8 million total surplus on nearly $420 million in revenue. St. Mary’s Medical Center’s latest financial data (PDF)
, from 2012, showed the hospital had a $13.3 million overall surplus with $380.7 million in revenue.Follow Bob Herman on Twitter: @MHbherman