The merger between SunHealth Alliance and Premier is taking longer to wrap up than executives hoped, largely due to the creation of suballiances.
The process should be completed by mid-May, said Pat Poston, Premier senior vice president for planning and communication. Originally, March 31 was set as the target date.
About 65 smaller SunHealth hospitals are being grouped into six or seven suballiances, Poston said. Suballiances are legal organizations for the aggregate holding of stock (See related story, p. 50).
Their development will lessen variations in shareholder equity in the new Premier, making it easier to merge alliance programs, according to Premier (Jan. 29, p. 6). Initially, at least a few SunHealth members weren't sure what to think of the suballiances.
Forming the suballiances has proved to be complex because several steps and many people are involved, Poston said. "I think we've reached a great deal of consensus on the suballiances grouping."