ChristianaCare completed the acquisition of Union Hospital, the not-for-profit health system announced Thursday.
Wilmington, Del.-based ChristianaCare added the 72-bed hospital in Elkton, Md. to its two-hospital network. It is the first hospital that ChristianaCare will operate outside of Delaware.
"This integration will advance our ability to make a positive impact on the health of every person in every community we serve," Dr. Janice Nevin, president and CEO of ChristianaCare, said in prepared remarks. "That includes providing high-quality, safe and affordable hospital care when people need it—and it also includes a wide array of services, partnerships and technology to help people achieve their best health and manage chronic conditions where they live, work and play."
Union Hospital, which is housed under Affinity Health Alliance, is affiliated with an oncology group, an urgent-care subsidiary and an imaging center. Officials said that all services and programs managed by Union Hospital and Affinity Health will continue with minimal interruption. Affinity Health will retain its 1,200 employees, they said.
Hospitals continue to consolidate at a steady pace, particularly independent facilities. Executives argue that scale is needed to better control costs, although economists contend that prices typically rise as competition dwindles. Quality measures can decline after hospitals combine, and results are at best mixed, research shows.
Union Hospital reported a $5.8 million operating loss on revenue of $156.6 million in 2019, compared with a $12.7 million operating loss on revenue of $152 million in 2018, according to Modern Healthcare Metrics.
ChristianaCare reported $118 million of operating income on $2.04 billion of revenue in 2019, up from $108.9 million of operating income on $1.94 billion of revenue the year prior, according to Modern Healthcare's financial database.
The providers signed a letter of intent to merge in June. Union Hospital will go by ChristianaCare, Union Hospital, and the campus will be known as ChristianaCare, Cecil County.
