Hospitals in pursuit of excellence

Life After a Merger

The November issue of Trustee magazine delves into hospital mergers with a cover article featuring case studies and interviews from leading experts. Additionally, an online-only article examines communication strategies and physician engagement.

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Shamokin Area Community Hospital, a 70-bed medical facility in the anthracite coal region of north central Pennsylvania, was still profitable, had finished an extensive expansion and renovation, and had a usable foundation of information technology. But its board looked at coming financial pressures, sized up the chances of preserving local services for a large Medicare population, and decided it had to be part of something bigger. It's now a campus of Geisinger Medical Center, 15 miles away.

Jewish Hospital in Cincinnati had it all — except scale. The renowned medical center "was highly effective, very financially able, an excellent bottom line, and very effective medically," says Rick Langosch, a consultant with the Coker Group, which advises on health care mergers and acquisitions. But the foundation governing the hospital elected to sell it to Mercy Health for $175 million, gaining economies of scale and pledges of ample resources to compete in an era of pay for performance.