A Peoria, Ill., hospital has arranged a new partnership seven months after its joint venture with a crosstown facility fell apart.
Methodist Medical Center of Illinois, a 346-bed hospital in Peoria, this month signed an affiliation agreement with Galesburg (Ill.) Cottage Hospital, a 193-bed facility 50 miles west of Peoria. The hospitals said they plan to jointly develop provider networks, information systems, purchasing agreements and marketing efforts.
"Working with Methodist will allow us opportunities to participate in a regional healthcare delivery system, while at the same time maintaining the autonomy and strong presence in the community we serve," said S. David Simpson, board chairman of Galesburg Cottage.
In February, Methodist withdrew from an affiliation agreement with 185-bed Proctor Community Hospital in Peoria after the hospitals disagreed on how acute-care services would be allocated between the two campuses (Feb. 12, p. 22).
The breakup came one year after both the U.S. Justice Department and Federal Trade Commission said they wouldn't challenge the deal, which would have given the hospitals control of 50% of the Peoria acute-care market. The Proctor-Methodist affiliation formed Community Healthcare Network, rivaling Peoria's largest and only other acute-care hospital, 560-bed St. Francis Medical Center.
Methodist's affiliation with Cottage is more loose, the hospitals said.
"At this stage in the game, it is purely an affiliation," said Celeste Kelley, director of Methodist's special programs and media relations. "The joint venture with Proctor was more a merger. (Galesburg Cottage) will remain independent and have its own board."
Methodist and Galesburg Cottage had combined 1995 revenues of about $200 million, according to HCIA, a Baltimore-based healthcare information company. They have more than $300 million in combined assets.