Two New York academic medical centers are reportedly close to reaching a merger agreement. But officials at Mount Sinai Medical Center and New York University Medical Center only would confirm that they are discussing "the possibility for cooperative activities" or "associations" and that talks are continuing. If a merger is approved, it would be the first in New York City in 15 years. Mount Sinai Medical Center operates 1,171-bed Mount Sinai Hospital and Mount Sinai School of Medicine. Mount Sinai Health System's regional network of affiliated healthcare providers includes 26 acute-care hospitals. NYU Medical Center operates 878 acute-care beds and NYU School of Medicine.
The head of American Transitional Hospitals, a subsidiary of Beverly Enterprises, is stepping down. Robert Crosby, 57, said he is leaving his posts as president and chief executive officer at ATH on June 17 to pursue entrepreneurial opportunities in the Nashville, Tenn., market. Crosby also was senior vice president at Beverly, the nation's largest nursing home chain, based in Fort Smith, Ark. Crosby joined ATH, a chain of 11 specialty hospitals that treat critically ill or injured patients, in 1992. Beverly bought the company in 1994. T. Jerald Moore will replace Crosby at ATH and will continue as executive vice president at Beverly.
Mary Grealy, who holds the No. 2 post of executive vice president at the Federation of American Health Systems, is leaving to join the American Hospital Association in the general counsel's office. The addition of Grealy, who spent 18 years at the federation, beefs up the AHA's presence in the areas of investor-owned hospitals and integrated delivery systems, areas where the AHA has increased its focus in recent years. "(The AHA) was looking for someone who knows investor-owned (hospitals) and knows Wall Street," Grealy said. Grealy is the second high-level federation executive to leave recently. Last month, Lynn Hart, its top lobbyist, announced she was moving to Dallas to take over Tenet Healthcare Corp.'s government affairs department.
With the signatures of more than 800,000 California voters, a sweeping initiative targeting managed-care abuses has been placed on the state's November general election ballot. The Patient Protection Act is sponsored by a consumer coalition led by the California Nurses Association and backed by consumer advocate Ralph Nader. The coalition contends the initiative will safeguard healthcare at no cost to taxpayers and is mounting a campaign costing $8 million to $10 million to pass it, a coalition spokesman said. Frank Schubert, senior vice president of Goddard Claussen/First Tuesday, a Sacramento, Calif., public relations firm hired to work against the initiative, said HMOs and healthcare organizations expect to spend about $7.5 million to defeat it. The California Healthcare Committee on Issues, a lobbying group, has assessed $10 per staffed bed from all nonpublic hospitals in the state to battle the initiative.
After nearly two years of planning, Loyola University Medical Center in Maywood, Ill., and West Suburban Hospital Medical Center in nearby Oak Park, Ill., announced the completion of their merger. The new organization, Loyola University Health System, is organized under a new parent corporation and an 11-member board. The system has $800 million in assets and had $550.7 million in net revenues last year. The Roman Catholic Archdiocese of Chicago, which has opposed some consolidations with for-profit companies, signed off on the deal because West Suburban is a not-for-profit hospital.
An internal committee has recommended that Riverside (Calif.) Community Hospital and its parent, Community Health Corp., form a joint venture with Columbia/HCA Healthcare Corp. The partnership would operate 369-bed Riverside, its radiology center and medical office buildings. Community Health's corporate members will vote on the recommendation June 25. "We believe that a Columbia affiliation will significantly reduce our operating costs and help position our hospital for the future," said Robert Bowers, chairman of the not-for-profit hospital's board. Columbia is completing a joint venture pact with Sharp HealthCare in adjoining San Diego County.