Montgomery General Hospital, Olney, Md., said it agreed to a partnership by years end with MedStar Health, Washington. The deal is pending state approval. Montgomery General chose MedStar over a bid from 417-bed Holy Cross Hospital in Silver Spring, Md.
In partnering with the larger MedStar system, the 87-year-old independent Montgomery General is mirroring a broader trend seen across Maryland and other states that have experienced pockets of large population increases. Last year, two-hospital Shore Health System, Easton, Md., merged with six-hospital University of Maryland Medical System, Baltimore, in part as a way to share services and staff.
Were a strong, solo community hospital, but without the size of a system like MedStar we can get diverted from our strategic path easier than if we were a part of a larger system, said Lynne Myers, vice president of corporate strategy and professional services at 144-bed Montgomery General. The deal would also include Montgomery General Hospital Community Health, its home health component, and its Montgomery General Hospital Health Foundation. MedStar has seven hospitals in and around the Washington/Baltimore area as well as a number of assisted-living facilities, home health and long-term care, rehabilitation and ambulatory centers.
Montgomery General has filed for a certificate-of-need exemption with the states health board, which would allow the partnership to move forward. Terms of the deal have not been disclosed. -- by Matthew DoBias