Starting to lay out evidence in defense of their monopoly merger, two merging healthcare systems in North Carolina have released the results of a study saying their combined organization will save more than $53 million.
Moses Cone Health System and Wesley Long Community Hospital, both in Greensboro, N.C., agreed to merge last fall. Moses operates 547-bed Moses H. Cone Memorial Hospital and a 115-bed women's hospital. Wesley Long is a 199-bed acute-care hospital.
The proposed merger would give the new organization, under the name Moses Cone Health System, an acute-care monopoly in Greensboro and control of more than 70% of the staffed beds in Guilford County (Sept. 23, 1996, p. 17).
The hospitals said they plan to file for antitrust clearance from the federal government within six weeks.
The new economic efficiencies study, which will become a key piece of evidence to justify the merger to federal antitrust enforcers, shows the merger would save $53.6 million in capital equipment, labor and other routine expenses over its first five years. In following years, annual savings of $13.7 million are expected.
In addition, the hospitals said a $50 million foundation will be created as a result to fund community health programs. Wesley Long Community Health Foundation plans to invest 5% of its assets annually in such programs, the hospitals said.
The hospitals also said 96 of their current 4,400 positions would be eliminated.