Memorial Hospital of Rhode Island, Pawtucket, a 294-bed teaching affiliate of Brown University School of Medicine, and Landmark Medical Center, a two-campus facility in Woonsocket and North Smithfield specializing in rehabilitation and psychiatric care, have agreed to consolidate under a common holding company. The merger makes the combined 527-bed organization the second-largest in Rhode Island. Both Memorial and Landmark are results of previous mergers, and the latest consolidation would combine four original hospitals in one entity, said Landmark spokesman Stephen Hines. The organizations earned a combined $2.1 million on a total budget of $158 million in the year ended Sept. 30, 1993, Mr. Hines said.
The New York City Health and Hospitals Corp. is conducting a comprehensive review of its largest-ever hospital reconstruction project, which is behind schedule and expected to cost $424 million more than the original estimate of $500 million. Board Chairman Luis A. Miranda Jr. appointed Joseph Quinones, HHC's senior director of contracting, to lead a review of the Kings County Hospital Center construction project and report back with recommendations to the board's capital committee. After 10 years of planning and $119 million in capital expenses, the only work completed has been an administrative building, a food service building and a few parking lots. The 1,210-bed Kings County is the largest of HHC's 11 acute-care hospitals.
With their eyes on healthcare reform, 33.4% of the nation's physicians are working in medical group practices, according to a new study by the American Medical Association. However, the first-time study found 34% of physicians remain in solo or two-physician practices, while 32.6% practice medicine under some form of hospital-employment arrangement. The study also found that physicians who join medical groups experience fewer restrictions on their autonomy than initially expected, are more likely to contract with health maintenance organizations and tend to have somewhat higher incomes than physicians in solo practices.
NovaCare, a provider of contract rehabilitation services, last week completed its merger agreement with RehabClinics, an outpatient physical therapy company, in a $195 million deal approved by shareholders of both King of Prussia, Pa.-based companies. The transaction makes NovaCare one of the largest providers of rehabilitation services, with annual revenues of $700 million. Under the agreement, each share of RehabClinic's common stock will be exchanged for 1.6 shares of NovaCare common stock. NovaCare operates 12 acute-care rehabilitation hospitals and various outpatient centers in 43 states.
Continental Medical Systems said last week that it has changed the name of one of its subsidiaries, Communi-Care/Pro-Rehab to Premier Rehabilitation Services. The newly named company will provide contract therapy and subacute services within skilled-nursing facilities. The move is a response to the growing demand for subacute care within the skilled-nursing setting, said Brad Hollinger, Premier's new chief executive officer. The formation of Boone, N.C.-based Premier was a result of combining the long-term-care services of Communi-Care and RehabWorks, another CMS subsidiary. RehabWorks will continue to focus on developing a national network of outpatient rehabilitation clinics and contract therapy services to hospitals, the company said. Mechanicsburg, Pa.-based CMS operates 37 rehabilitation hospitals and provides outpatient rehabilitation through more than 135 branches nationwide.
Ramsay-HMO said it would acquire Genesis Health System, a state-certified prepaid Medicaid plan in Orlando, Fla., with 13,000 enrollees. Financial details weren't disclosed. Luis Lamela, the Coral Gables, Fla.-based plan's chief executive officer, said the move will enable Ramsay to expand into central Florida and increase the size of its workers' compensation services, which include 60,000 enrollees in south and central Florida.