The other shoe dropped in Spartanburg, S.C., last week when 189-bed Mary Black Memorial Hospital signed a letter of intent to form a joint venture with Quorum Health Group, a Nashville, Tenn.-based hospital chain.
The venture follows the dissolution of the proposed partnership of Mary Black and Spartanburg's other hospital, 444-bed Spartanburg Regional Medical Center. Spartanburg Regional has since joined a proposed network of hospitals in Greenville, S.C., and Anderson, S.C. (Oct. 23, p. 32).
Mary Black is a private not-for-profit hospital that will convert into a for-profit facility under the deal with Quorum, said Gerald Landis, president of Mary Black. The transaction is expected to close March 31, 1996, he said.
The hospital will be operated by a joint venture between Mary Black and a Quorum subsidiary. The final details of the arrangement haven't been released, but Quorum will own 51% or more of the joint venture, Landis said.
Quorum has long ties to the hospital. It has had what Landis called a "management assistance" contract with the hospital since 1979. Landis headed the hospital as a Quorum employee from 1980 until 1990, when he became a hospital employee.