ProMedica Health System, Toledo, Ohio, has acquired St. Luke's Hospital, a 198-bed facility about 10 miles south of Toledo in Maumee, Ohio. St. Luke's Hospital, which recorded operating losses in the past three years, becomes the eighth of ProMedica's hospitals scattered around northwest Ohio.
ProMedica Health acquires Ohio hospital
The organizations announced in January that they were in talks toward forming an unspecified affiliation and in May entered a definitive agreement toward making St. Luke's Hospital a member of ProMedica. Terms of the deal were not disclosed.
“The due diligence we have conducted over the last several months has been intense and detailed,” said Barbara Steele, president of acute care for ProMedica, in a news release. “Yet, in many ways, the work starts now as teams begin the process of analyzing which services should be integrated to achieve efficiencies.”
According to a February Moody's Investors Service report downgrading St. Luke's Hospital's bond rating, the facility was headed for a negative margin of nearly 11% in 2009, with unaudited operating revenue for the first 11 months pointing to annual operating revenue of $147 million. A ProMedica spokeswoman said she could not provide updated figures.
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