Denver-based Catholic Health Initiatives has signed a final agreement to sell its 256-bed St. Joseph Hospital in Lancaster, Pa., to Health Management Associates. The sale to Naples, Fla.-based HMA requires approval from the Pennsylvania attorney general, a state court and the Roman Catholic Church. The sale, expected to close June 30, would give HMA control of two of the three hospitals in Lancaster, or 43% of the city's acute-care beds.
Scripps Health, San Diego, will close 105-bed Scripps Memorial Hospital East County in El Cajon, Calif., on June 5. Officials cited the hospital's loss of $13 million since 1997 and its 30% occupancy rate for its closure. Scripps officials say they may sell the campus, but with the proviso that the buyer not operate it as an inpatient facility.
Froedtert Memorial Lutheran Hospital, Milwaukee, and Community Memorial Hospital, Menomonee Falls, Wis., last week signed a memorandum of understanding to establish a new strategic partnership. However, the structure of the arrangement is unclear and no timeline was announced for completion of the deal. Both 467-bed Froedtert and 153-bed Community are part of Horizon Healthcare, a seven-hospital network in metropolitan Milwaukee.
The board of St. Louis-based SSM Health Care voted earlier this month to sell 254-bed St. Francis Hospital and Health Center in Blue Island, Ill., the company's only Chicago-area hospital. SSM, which is owned by the St. Louis-based Franciscan Sisters of Mary, owns or manages 20 hospitals and three nursing homes in four states. St. Francis earned $10.6 million on $158 million in total 1999 revenue. SSM spokeswoman Dixie Platt said the company was not divesting the hospital for financial reasons, but wanted the hospital to find a local, preferably Catholic, partner. SSM said it did not have a timetable for the sale.
The Morgan County (Ind.) Board of Trustees has approved a plan to affiliate its 86-bed Morgan County Memorial Hospital, Martinsville, Ind., with three-hospital St. Francis Hospital and Health Centers, Beech Grove, Ind. The organizations will work on a clinical management affiliation, leaving Morgan County Memorial as an independent county-owned hospital, a St. Francis spokesman said.
The Eldora, Iowa, City Council voted 4-1 on March 6 to close 12-bed Eldora Regional Medical Center and convert it to a clinic sometime in the next few months. Mercy Medical Center North Iowa in Mason City manages the hospital, which has been losing $50,000 per month.
Grace Hospital, a 57-bed long-term acute-care hospital in Cleveland, will affiliate with the Cleveland Clinic Foundation. The foundation will provide support and advice but will not own or control Grace. Spokesmen for both facilities said no money changed hands. Terms of the affiliation allow Grace to open satellite units at two Cleveland Clinic hospitals: Huron Hospital in East Cleveland and Lakewood (Ohio) Hospital.