Arlington (Va.) Hospital has completed its 50-50 joint venture deal with Columbia/HCA Healthcare Corp., with the transaction expected to close within several weeks. The parent of 299-bed Arlington will contribute the hospital and its assets to a new for-profit company called Columbia Arlington Healthcare System. Columbia, in turn, will contribute 127-bed Reston (Va.) Hospital Center, a 100-bed psychiatric facility and a surgery center to the new company. Columbia also will pay $8 million to Arlington's parent to compensate it for the difference in assets that the parties are contributing to the joint venture. The parties, which have been working on the deal since January, didn't disclose the total value of the assets involved. But according to figures from the Virginia Health Services Cost Review Council, Arlington reported total assets of about $225.3 million in 1994.
Philadelphia's Methodist Hospital and Thomas Jefferson University Hospital signed agreements to merge services. The agreements describe governance of the merged organization and provide for the full integration of the hospitals' medical staffs. Earlier this year, the institutions approved a memorandum of understanding to merge (May 13, p. 21). Under the new agreements, Methodist becomes part of Jefferson Health System, which was formed in August 1995 by Thomas Jefferson University and Main Line Health System.
Executives at Mercy Health System-Northern Region of Toledo (Ohio) said 170-bed Mercy Hospital no longer will provide inpatient or emergency services and will be converted into a "regional support campus" and outpatient-care center. Inpatient and emergency services will continue at the system's other two hospitals in Lucas County, 234-bed St. Charles Hospital in Oregon, Ohio, and 472-bed St. Vincent Medical Center in Toledo. "While our system is very strong, our three Toledo-area hospitals are in close proximity to each other and average 150 empty beds daily," said Darryl Lippman, system president and chief executive officer. The subsidiary of Mercy Health System of Cincinnati said it will save more than $11 million through the reconfiguration. Executives acknowledged up to 200 jobs could be cut.
St. Luke's Health System in Kansas City, Mo., has turned the tables on North Kansas City Hospital in the latter's effort to take control of one of St. Luke's suburban facilities (July 22, p. 14). North Kansas City is working with citizens of Smithville, Mo., to use eminent domain to buy the Smithville building of St. Luke's Northland Hospital. St. Luke's shut down emergency and acute-care services at that location in 1995, and residents have asked North Kansas City to restore them. Now, using the state sunshine law, St. Luke's has sent North Kansas City a request for dozens of its records, including strategic plans, contracts and budgets. North Kansas City, a city-owned institution, has asked the local circuit court for a declaratory judgment defining what it must provide.
Two home-care information systems firms, InfoMed Holdings in Pompano Beach, Fla., and privately held Simione Central in Atlanta, have agreed to merge. The deal calls for Simione owners to receive a 60% stake in newly issued InfoMed stock, said Barrett O'Donnell, chairman and chief executive officer of InfoMed. InfoMed stockholders will hold onto the remaining 40%. The transaction is expected to close within 60 days. O'Donnell said the merger would create a company offering both technology products and consulting services to more than 800 home health providers across the country. InfoMed reported fiscal 1995 revenues of $14.5 million.
Balanced Care Corp., an assisted-living provider in Mechanicsburg, Pa., agreed to buy privately held Foster Health Care Group in Springfield, Mo., for $44.5 million in cash and stock. The combined companies will have revenues of $48 million this fiscal year. Balanced Care will operate 11 independent- or assisted-living communities, 10 skilled-nursing facilities, an institutional pharmacy, a rehabilitation provider and a home-care agency in Missouri, Pennsylvania and Wisconsin. Brad Hollinger, chairman and chief executive officer of Balanced Care, said the acquisition is part of his strategy to build up a "critical mass" before he takes the company public in the next 18 to 24 months. Hollinger said he plans to focus on acquiring companies that will help Balanced Care provide a continuum of long-term-care services to the country's rapidly expanding aging population.