NEW YORK-An investment fund chaired by financier Henry R. Kravis has agreed to lend $2 million to help two financially distressed New York hospitals expand their managed-care plans. In a joint venture, Jamaica Hospital Medical Center in Queens and Brookdale Hospital Medical Center in Brooklyn will use the money to build Medicaid managed-care enrollment and sell management and marketing services to doctors, health networks and other managed-care groups. The loan is to be repaid over the next four years. The hospitals' lender is the New York City Investment Fund, formed last year to create jobs and spur economic growth in the city. Kravis, a principal shareholder of leveraged buyout firm Kohlberg, Kravis Roberts & Co., brought Merit Behavioral Care Corp. into the fund as an investor. Merit has an equity interest in one of the managed-care plans, has provided start-up capital for both plans and has a relationship with both hospitals for managed mental healthcare services.
WALLINGFORD, Conn.-Masonicare, a not-for-profit senior services company in Wallingford, said it has agreed to buy Homecare, also of Wallingford. Terms of the acquisition weren't disclosed. Masonicare said Homecare currently generates about $25 million in revenues. The combined company is expected to post $85 million in revenues. The deal will make Masonicare the leading statewide provider of home-care services in Connecticut.
NEW YORK-Barry R. Freedman was installed last month as chairman of the Greater New York Hospital Association. Freedman is executive vice president of New York's Mount Sinai Medical Center, overseeing Mount Sinai's hospital and health system. The GNYHA represents 175 hospitals and continuing-care facilities in the New York area.
JERSEY CITY, N.J.-Christ Hospital in Jersey City has dropped out of merger talks with Bayonne (N.J.) Hospital and Palisades General Hospital in North Bergen, N.J. In April, the three Hudson County hospitals announced they were exploring the development of a countywide health system. In a statement, Daniel R. Connell, Christ president and chief executive officer, said, "The business plan and strategies for a proposed merger were not in the best interests" of the hospital or community. A hospital spokeswoman would not elaborate but said Christ continues to explore local and regional affiliations.