Five was too many, but three was just right.
A trio of not-for-profit hospitals in West Virginia last week agreed to form a new company to coordinate major purchases of equipment and facilities. Two other hospitals that were part of the negotiations went their separate way.
After eight months of review, 264-bed Cabell Huntington (W.Va.) Hospital; 201-bed Pleasant Valley Hospital in Point Pleasant, W.Va.; and 440-bed St. Mary's Hospital in Huntington agreed to form Genesis Affiliated Services with contributions of about $1.3 million each.
The hospitals had announced in March their intent to form a statewide system with 779-bed Charleston (W.Va.) Area Medical Center and 205-bed Monongalia General Hospital in Morgantown, W.Va. The hospitals said those talks ended when all five agreed to pursue the development of local and regional networks and to avoid the complexity of creating a statewide system.
The Genesis partners said they will continue to run their own day-to-day operations and will not merge assets. They will, however, pool some annual income through the new company. The agreement also calls for a fine of up to $10 million if one of the hospitals decides to sell its facilities within the next five years.
The alliance must be approved by the state Health Care Authority, which is expected to take about six months to review it.