MADISON HEIGHTS, Mich.-The 166-bed osteopathic Oakland General Hospital in Madison Heights will become a wholly owned subsidiary of Detroit-based St. John Health System under a pact between that system and the hospital's parent system, Oakland General Health Systems. As part of the agreement, to be ironed out in the next few months, Oakland General Health Systems will no longer exist, but Oakland General Hospital will keep its name. "Under its (reform) plan, government will favor multisite health systems, as opposed to independent hospitals," said Glenn Wesselmann, president and chief executive officer of St. John Health System. St. John Health System already includes 581-bed St. John Hospital and Medical Center and several other healthcare facilities in Oakland, Wayne and Macomb counties in Michigan. In 1992, Oakland General Health Systems reported net income of $5.1 million on total revenues of $52.1 million, according to HCIA, a Baltimore-based healthcare research company.
CINCINNATI-Two of the city's biggest hospitals said last week they will affiliate, sharing management in the short term and looking at long-term ways to combine some medical operations. Christ Hospital, a 660-bed facility, and 636-bed University of Cincinnati Hospital said they will continue their identities as separate institutions. They said the affiliation is intended to reduce costs and make operations more efficient as well as improve medical services and physician training. The boards, management and physicians of the two hospitals will work in the next few months to define the medical operations they will integrate. Executives said they hope the affiliation will strengthen the position of both hospitals in the Cincinnati regional market as competition in the healthcare industry increases. The affiliation could cut costs by allowing the hospitals to share technology and facilities. The hospitals said they have no immediate plan to lay off employees. They have a combined employment of almost 6,400, not including about 2,200 physicians either on staff or with visiting privileges. The hospitals admitted 43,000 patients in 1993 and served about 320,000 people as outpatients.-Associated Press