NYU Hospitals Center has applied for a full-asset merger with Lutheran Medical Center in Brooklyn as it continues to hunt for more deals around the city.
The New York-based system, which includes NYU Langone Medical Center and the NYU School of Medicine, took control of Lutheran on April 1 and has committed $190 million in grants and loans for investments in new clinical programs, equipment and health information technology. The certificate of need filed July 2 would merge the two providers and leave NYU as the sole surviving entity.
In an earnings report for the nine-month period ended May 31, NYU reiterated that it is also looking to add other acute-care hospitals to its group. It is searching in areas outside Manhattan that still have a sufficient number of NYU-affiliated physicians to support an alliance. No letters of intent have been signed yet, according to the report.
The expansion plan update comes as NYU continues to improve its financial picture in the aftermath of Superstorm Sandy in October 2012, which shuttered its emergency department for 18 months.
NYU reported an operating surplus of $156.4 million on $1.9 billion in revenue for the nine-month period, compared with an operating surplus of $124.3 million on nearly $1.7 billion in revenue during the same period last year. Its operating margin improved to 8.2% from 7.5%.