NATRONA HEIGHTS, Pa.-The board of 247-bed Allegheny Valley Hospital in Natrona Heights has approved a plan to merge with Allegheny Health, Education and Research Foundation, the parent corporation of Allegheny General Hospital in Pittsburgh. Under the deal, which is expected to close next spring, Allegheny Valley will become part of Allegheny University Medical Centers, an AHERF subsidiary created earlier this year. Allegheny Valley joins Forbes Health System, a two-hospital system based in Pittsburgh, in having announced intentions to become part of AHERF's community hospital subsidiary.
BOSTON-Partners Community HealthCare, an integrated physician network founded by Brigham and Women's Hospital and Massachusetts General Hospital, has signed an agreement with two community mental health centers to round out a full-service behavioral healthcare network in eastern Massachusetts. Partners said the agreement provides a platform to deliver mental healthcare under both managed-care contracts-in which mental health and substance-abuse treatment are integrated with medical-surgical care-and "carve-out" contracts, in which behavioral health services are contracted separately from medical-surgical care. The agreement links the Partners network's 712 primary-care physicians, its existing mental health network and the community-based services of Riverside Community Care in Dedham, Mass., and South Shore Mental Health in Quincy, Mass. Riverside serves about 50 communities north and west of Boston, while South Shore provides services in the South Shore and Cape Cod areas of metropolitan Boston.
KING OF PRUSSIA, Pa.-NovaCare, a rehabilitation services company based in King of Prussia, announced the completion of its acquisition of Advanced Orthopedic Technologies for $14.1 million in cash. West Hempstead, N.Y.-based Advanced Orthopedic provides orthotic and prosthetic services at 37 sites in California, New Jersey, New Mexico, New York, Virginia and West Virginia. It expects revenues of $17 million in 1996. NovaCare's orthotics and prosthetics division runs more than 200 patient-care centers across the country. NovaCare had $800 million in revenues in its fiscal year ended June 30. NovaCare also agreed to buy East Stroudsburg, Pa.-based Pocono P&O. The purchase price wasn't disclosed, but the company said the payment involved a mix of cash, a note and an amount tied to future performance. Pocono P&O, which owns three orthotics and prosthetics centers in Pennsylvania, expects $1 million in revenues in 1996.
NEW YORK-New York University has entered a 15-year lease for space in Prospect Park Residence, a joint venture between ARV Assisted Living and a New York development company, for $4.9 million. The 127-unit Prospect Park in Brooklyn, scheduled to open in spring 1997 after renovations, will be ARV's first facility in the state. The university will lease 15,000 square feet on the first floor of the nine-floor residence to provide medical and dental services to residents. Costa Mesa, Calif.-based ARV operates 41 other facilities across the country.
PRINCETON, N.J.-In honor of Richard C. Reynolds, M.D., who's retiring as its executive vice president, the Robert Wood Johnson Foundation, Princeton, has endowed a faculty chair at the University of Medicine and Dentistry of New Jersey-Robert Wood Johnson Medical School, New Brunswick, N.J. The $2 million endowment creates the Reynolds Chair in Internal Medicine, which will be occupied by Jeffrey L. Carson, M.D., a professor of medicine and the medical school's chief of the division of general internal medicine. Reynolds joined the foundation in 1987. Before that he was dean of UMDNJ-Robert Wood Johnson Medical School and UMDNJ's senior vice president for academic affairs.