Methodist Hospital of Indiana continues to stretch its network statewide, merging with 74-bed Bedford (Ind.) Medical Center, one of 10 Indiana hospitals affiliated in some way with the state's largest hospital.
As part of the deal completed last month, 928-bed Methodist becomes the corporate owner of Bedford, providing the smaller not-for-profit hospital with oversight on its planning, budgeting and other financial matters. With some $16 million in assets, Bedford includes 30 physician employees who merged their practices with the hospital last year.
"This is the first one of its kind for us because we will be the sole corporate member of Bedford's board," said Frank Learned, senior vice president of Methodist Health Group, the umbrella corporation of Methodist Hospital. "We're developing a statewide delivery system, but our strategies in Bedford are different from what they may be for other partners."
Bedford had net income of $724,000 on net revenues of $21.6 million in 1994, according to HCIA, a Baltimore-based healthcare information company.
Terms of the Bedford deal weren't disclosed, but it's similar to a merger with 298-bed Union Hospital, a not-for-profit in Terre Haute. In that deal, a separate holding company is being created, Learned said. The hospital includes a 70-member physician group. Union reported net income of $5.6 million on net revenues of $118 million in 1994, HCIA said.
Union has advanced the furthest of five hospitals that agreed last year to explore the development of a system designed to bid jointly for managed-care contracts with Methodist. Other hospitals involved in that venture are 250-bed Columbus (Ind.) Regional Hospital; 416-bed Deaconess Hospital in Evansville; 244-bed Home Hospital in Lafayette; and 582-bed Parkview Hospital in Fort Wayne.
Methodist also is working on affiliations with several public hospitals throughout the state and a $1 billion consolidation with 596-bed Indiana University Medical Center (June 19, p. 20). The IU-Methodist venture is undergoing study by a blue-ribbon committee appointed by Indiana Gov. Evan Bayh, who said he wants to ensure the state's medical education programs and care for the indigent don't suffer.
Methodist completed a clinical affiliation last month with 128-bed Howard Community Hospital, a public facility in Kokomo. It's the third such relationship Methodist has completed with public hospitals in Indiana.
Other public hospitals affiliated with Methodist are: 73-bed Johnson Memorial Hospital in Franklin and 97-bed Tipton County Memorial Hospital in Tipton.
Terms of the affiliations weren't disclosed, but executives at the smaller hospitals said working more closely with Methodist will help them develop a more cost-effective patient referral system.