Flagler Hospital in St. Augustine, Fla., has announced a $30 million plan to consolidate acute-care services at one of its two campuses.
In 1991, 115-bed Flagler acquired its competitor, 115-bed St. Augustine General, a for-profit hospital owned by the Healthtrust hospital chain. After an antitrust investigation, the Federal Trade Commission cleared the deal.
At the time, executives said both facilities would remain open for acute-care services (Sept. 30, 1991, p. 7).
owever, like many merged hospitals, Flagler's plans changed. To increase operating efficiencies, Flagler now wants to issue tax-exempt bonds and use its own cash to build a 105,000-square-foot acute-care patient tower and a 60,000-square-foot medical office building at its main campus, said Wayne Johns, Flagler's director of communications.
Flagler's existing hospital has 123,000 square feet with a 75,000-square-foot medical office building. Meanwhile, the old St. Augustine hospital building, which is located across the street from Flagler, will be converted to an outpatient surgery facility, Johns said.
Construction is expected to be completed in early 1997, Johns said.
From a financial standpoint, the merger has been good for Flagler, said HCIA, a Baltimore-based healthcare information company. Since the merger, Flagler has increased profits 386% to $5.35 million in 1993 from $1.1 million in 1990, the year before the merger, HCIA said.
Flagler's total profit margin increased from 4% in 1990 to 9.75% in 1993, the latest year for which data was available, HCIA said.-