Regional News/Northeast: Eastern Maine Healthcare Systems acquires Mercy Health System

PORTLAND, Maine—Eastern Maine Healthcare Systems acquired Mercy Health System in Portland on Oct. 2 after winning approval from state regulators. Mercy was previously owned by Catholic Health East, which recently merged with Trinity Health and is Brewer-based EMHS' eighth hospital in the state. “Our efforts as a healthcare system to deliver the right care, in the right place, and at the right time will be enhanced with the addition of Mercy Hospital to EMHS,” Michelle Hood, the not-for-profit system's president and CEO, said in a news release. Under the terms of the agreement, EMHS will assume Mercy's $73 million in tax-exempt bond obligations and invest at least $115 million into its facilities and services over the next five years, according to its application to the state for a certificate of need. Mercy will retain its name and continue to adhere to the Catholic ethical and religious directives. In addition to the 168-bed hospital, Mercy includes Mercy Hospital Fore River, a campus housing an orthopedic institute and obstetrical services, as well as a home health and hospice program, a substance-abuse treatment center, and several outpatient centers and physician offices.

GREAT NECK, N.Y.—In a new accountable-care arrangement, North Shore-Long Island Jewish Health System has won New York state approval to take financial risk for serving 170,000 commercial enrollees covered by New York insurer EmblemHealth. North Shore-LIJ will earn a share of savings if the cost of care totals less than the budgeted amount, said Howard Gold, the health system's executive vice president of managed care and business development. But North Shore-LIJ must pay back EmblemHealth if spending on medical care goes over budget. Gold said the health system will be the “preferred provider” for the 170,000 EmblemHealth customers in Long Island, Staten Island, Queens and Manhattan. Patients with North Shore-LIJ primary-care doctors will be referred within the system, he said, but patients will not have a financial incentive to stay within the system for treatment. “We're trying to create a referral pattern,” he said.

YORK, Pa.—Aetna struck its first accountable care contract in Pennsylvania with WellSpan Health, a three-hospital system anchored by 549-bed York (Pa.) Hospital. WellSpan added 134-bed Ephrata (Pa.) Community Hospital to the system in a deal that closed Oct. 1. Aetna will sell fully insured and self-insured products beginning in April 2014 that make WellSpan financially accountable for quality and cost of the care delivered by its hospitals and physicians. The system will bear risk for the outcomes, according to a news release, based on measures that include the percentage of members who get preventive care and screenings, management of patients with chronic conditions, and reductions in readmissions and avoidable visits to the emergency room. WellSpan has about 500 physicians in the WellSpan Medical Group, 35 outpatient centers, a home care service, and a surgery and rehabilitation hospital. “At WellSpan, we have always believed that collaborations are among the most effective means to serve the needs of our communities,” WellSpan President and CEO Dr. Kevin Mosser said in a news release.