Morton Plant Mease Health Care in Dunedin, Fla., and OrNda HealthCorp have signed a letter of intent to form a partnership in Florida's north Tampa Bay market.
Morton Plant Mease would be the managing partner of the unnamed partnership. Nashville, Tenn.-based OrNda would retain ownership of 122-bed North Bay Medical Center in New Port Richey, which would remain for-profit.
"We serve a large number of patients in Pasco County," said Frank Murphy, Morton Plant Mease's chief executive officer. "We need an inpatient facility."
Morton Plant Mease would contribute its home health agency to the partnership, which would lease North Bay from OrNda, Murphy said.
Besides the hospital and home health agency, the partnership would operate a long-term-care facility, a home medical equipment company, an ambulatory-care center, a rehabilitation facility and physician offices, Murphy said.
"This partnership will allow us to provide a continuum of care for the community," he said.
Dennis A. Taylor, North Bay's CEO, was appointed president of the partnership.
Meanwhile, Morton Plant Mease also signed a letter of intent to acquire two-hospital Regional Healthcare, a debt-ridden system based in Brooksville, Fla., Murphy said.
"We will work something out so they can have a local not-for-profit community board," Murphy said. The deal could be worked out in October, he said.
Regional includes 91-bed Brooksville Regional Hospital and 75-bed Spring Hill (Fla.) Regional Hospital. From 1992 to 1993, the two hospitals lost $12.2 million on total net patient revenues of $88.6 million, according to HCIA, a Baltimore-based healthcare information company.
In 1994, Spring Hill earned $1.9 million on net patient revenues of $20.6 million, HCIA said.