Park Ridge Health System and St. Mary's Hospital, both of Rochester, N.Y., last week signed a definitive agreement to form a new healthcare system in the city, consolidating all general acute-care beds at one site and specialty services at another.
The partners have received a $40 million pledge from Daughters of Charity National Health System-East. That capital will be used to pay debt and fund renovations, among other uses.
A new holding company, St. Mary's-Park Ridge System, will oversee operations of the new system. Timothy McCormick, president and chief executive officer of Park Ridge Health System, has been named president and CEO.
Although the deal does not involve a merger of assets, it will require a significant amount of service reconfiguration. Under the plan, specialty services such as rehabilitation and inpatient psychiatric care will be located on St. Mary's campus. Park Ridge Hospital in Rochester will house general medical-surgical beds. The reconfigured system will operate just 263 beds, a reduction of 214.
The Federal Trade Commission has approved the deal, but all revamped services will require state certificate-of-need approval.