Four Dayton, Ohio-area hospitals will unite under a merger between Grandview Hospital and Medical Center, a 278-bed osteopathic facility in Dayton, and 482-bed Kettering (Ohio) Medical Center. The combined hospitals will control about 25% of the Dayton-area inpatient market.
Grandview's staffed beds include those at its Southview Hospital in Dayton, while Kettering includes its Sycamore Hospital in Miamisburg, Ohio.
In a news release, Grandview termed the deal "the next logical step in the affiliation process." The hospitals share administrative information systems, clinical systems, contracting and other services under a nearly 3-year-old affiliation called the Alliance for Health.
New York rating agency Standard & Poor's lowered Grandview's rating in November 1998 to BBB- with a negative outlook from BBB.
Grandview experienced losses for the eight months ended Aug. 31, 1998, because of an unprofitable Medicare capitation contract and unsuccessful cost-containment measures, according to Standard & Poor's. The hospital has since terminated the unprofitable contract and implemented austerity measures, the agency said.
The merged system will be headed by Frank Perez, Kettering's president and chief executive officer. The deal is expected to be completed by July.
In other Ohio hospital news, Quorum Health Group has completed its sale of Park Medical Center in Columbus to Ohio State University for
$12.7 million. Quorum bought the 165-bed hospital in February 1992, and it has listed it for sale since September 1998. Ohio State has renamed the hospital Ohio State University Hospitals East and has installed an interim management team, said David Crawford, a spokesman for 553-bed Ohio State University Medical Center>